Tag: ftv

This morning Fortive announced merging its Automation & Specialty business with Altra Industrial. The initial transaction details are below.

Terms of the deal:

Partly structured as a Reverse Morris Trust and as Direct Purchases of Assets & Equity interest:

· FTV will contribute a portion of FTV A&S businesses to the newly created subsidiary

· FTV will distribute the equity interests in Spinco to FTV shareholders in either split-off or spin-off

· Spinco will merge with a subsidiary of Altra, and as a result will become a subsidiary of Altra, and Spinco shareholders will receive 35M shares of Altra common stock

· Upon closing, FTV will own 54% of the combined company, and Altra 46%

Fortive A&S brands Kollmorgen, Thomson, Portscap and Jacobs to be divested to new Spinco ($907M in sales, $220M in EBITDA)

Fortive shareholders to receive ~$3B ($1.4B in cash proceeds and debt reduction, $1.6B in newly issued Altra common stock)

Transaction expected to close by the end of the year

Continue reading “Fortive announces spin-off/split-off deal with Altra Industrial”

Fortive reported a good 4Q17 with sales growth of 11% (+3% organic) and adjusted EPS growth of 20.6%, mostly in line with expectations. Management provided its initial 2018 guidance of 3-4% organic sales growth and 16-19% EPS growth. We should expect some M&A activity during the year, with $5B available for deals. We are pleased with the results and maintain our position size and price target. Continue reading “Fortive 4Q17 earnings results were good – 2018 guidance is supportive of our thesis”