DOW - April Spin-Off Review
Introduction
A stock spin-off is the formation of a new, independent company via the distribution of shares from the parent company. Corporations execute these transactions for many different reasons, including improving strategic focus, closing a valuation discount, removing conflicts of interest, evolving capital allocation priorities, and better-aligning investor bases. As a result, spin-offs have historically performed quite well and frequently represent some of the most compelling opportunities available for active investors.
April was a busy month for spin-offs. One new transaction was announced (Ingersoll-Rand) and two spin-offs closed (Dow and Alcon). This article not