List of Spinoff companies: when corporate splits create value

Corporate spinoffs represent strategic corporate actions where established companies divest divisions into independent entities, creating pure-play investment opportunities. These newly independent stocks are primarily traded on major exchanges like NYSE and NASDAQ, offering investors focused exposure to specialized business units. Despite initial volatility, the spinoff segment, characterized by entrepreneurial management and operational focus, provides unique value creation potential.

The spinoff market is not just about corporate restructuring; it unlocks hidden value through business specialization. The main advantages of investing in spinoffs include:

• Management focus: Dedicated leadership teams driving targeted growth strategies without corporate bureaucracy.
• Market recognition: Independent valuation reflecting true business potential rather than conglomerate discount.
• Performance potential: Historical tendency to outperform parent companies by 10-20% in first two years post-separation.

The payments processor PayPal and snack food leader Mondelez exemplify successful spinoffs – PayPal (spun from eBay in 2015) grew 400% in five years, while Mondelez (spun from Kraft Foods in 2012) became a $90B standalone company. Their separations allowed market-specific strategies impossible within parent structures. Investing in spinoffs offers participation in newly agile companies with clarified growth trajectories.

Many spinoffs develop strong dividend policies. Otis Worldwide (spun from United Technologies) initiated dividends immediately in 2020, while Carrier Global (from same parent) established a 1.5% yield at launch. This explains why spinoffs generate 20% average annual returns in their first three years. Common spinoff sectors include 3 corporate restructuring hotspots: technology (ZoomInfo from Genstar), healthcare (Organon from Merck), and industrial components (Vontier from Fortive).

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The following table contains a list of notable publicly-traded spinoff companies by separation impact, primarily traded on U.S. exchanges (including companies spun off within the last decade). The list includes only independent public companies, and the presented data (price, performance since spinoff) are regularly updated to reflect the current market situation.