Brunswick to spin-off fitness business

Brunswick announces plans to spin-off fitness business 

Brunswick to spin-off fitness business. Stockwinners.com
Brunswick to spin-off fitness business. 

Brunswick Corporation (BC) announced that its Board of Directors has authorized proceeding with a spin-off of its Fitness business.

Following the proposed transaction, the Fitness business will be an independent, standalone, publicly traded company, “FitnessCo”.

FitnessCo, which will be formally named at a later date, will continue to manufacture and sell its strength and cardiovascular equipment and game tables and accessories under the Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT and Brunswick Billiards brand names.

As an independent company, FitnessCo will be able to focus more sharply on driving product leadership, operational excellence and technology development to address evolving commercial fitness marketplace trends. FitnessCo sales revenue was $1.03B in 2017.

FitnessCo will remain headquartered in Rosemont, Illinois. Jaime Irick, current President of the Company’s Fitness division, will lead FitnessCo upon completion of the transaction.

Following the spin-off, Brunswick, comprised of the Marine Engine and Boat segments, will remain a global leader in recreational marine products.

The Marine Engine segment, which consists of Mercury Marine, manufactures and distributes a broad range of marine propulsion systems and related parts and accessories.

The Boat segment manufactures and distributes a range of recreational boats under 14 boat brand names including Boston Whaler, Bayliner, Lund, Lowe, Harris and others.

These businesses generated approximately $3.5B in sales in 2017.

The Brunswick marine portfolio will continue to deliver unique technology and solutions to boaters worldwide.

Mark Schwabero will continue to lead Brunswick following the spin-off. The Company will remain headquartered in Mettawa, Illinois, and will continue to trade on the New York Stock Exchange under the ticker symbol BC.

BC closed at $57.20.


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Asia Pacific Wire and Cable is in play

Lonsin Capital submits indication of interest to acquire majority of APWC

Lonsin Capital submits indication of interest to acquire majority of APWC. Stockwinners.com
Lonsin Capital submits indication of interest to acquire majority of APWC

LONSIN Capital Limited, together with its affiliates, representing over 5% of the shares outstanding of Asia Pacific Wire and Cable (APWC) on February 23, 2018 wrote to the Board of Directors of the Company and to the Board of Directors of the main Shareholder Pacific Electric Wire and Cable Co. the intention of interest to acquire a majority of APWC US at $4.00 per share.

The proposal would represent a 62% premium to February 22, 2018 ‘s close of $2.475 and a 47% premium to the five-year average closing price on NASDAQ.

LONSIN said, “LONSIN has expressed concern to the management, both orally and in writing, concerning the failure of the Company to take sufficient action to enhance shareholder value and to include an additional independent director on the Company’s board of directors over time.

On May 18, 2016 LONSIN wrote a requisitioned, open letter to the Board of Directors of APWC asking the Board to consider a range of measures that could help deliver enhanced shareholder value without much cost to the Company.

The Board responded by stating that they ‘took very seriously concerns about shareholder value.’…In light of the underwhelming track record of the incumbent Board and Management of APWC over the short, medium and longer term, LONSIN believes that the acquisition of the majority stake would bring ‘fresh impetus’ to APWC’s assets and ‘swiftly deliver enhanced value for all shareholders.'”

A response received from the Board of PEWC’s US legal counsel, Michael Hagan, on February 27, 2018 states that the “LONSIN letter has been circulated to the board for their consideration.”

The response goes on to state that “a substantive response to the LONSIN offer” will be issued in due course but it is unlikely to be before the March 8, 2018 owing to existing commitments of the directors.

APWC closed at $2.50.


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