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Jim Osman
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Jim has been in the securities industry for over 20 years. His previous roles included portfolio manager of a London based special situations fund focusing exclusively on Spinoffs; portfolio manager at a highly regarded specialized equities and derivatives hedge fund based in Chicago, and an... More
My company:
The Edge Consulting Group
  • TSR Target Takeover Of Spinoff WhiteWave Foods: Kraft, Nestle, Danone, X2 Other Potential Acquirers 0 comments
    Jun 4, 2013 10:39 AM | about stocks: WWAV, DF, KHC


    A study by leading advisors TSR and Deloitte discovered a third of US Spinoffs are taken over in the first two years. Now, almost 10 days ago (May 23, 2013), Dean Foods (NYSE:DF) completed the Spinoff / Demerger of its 66.8% stake in WhiteWave Foods (NYSE:WWAV), a leading producer, marketer, distributor and seller of packaged foods and beverages across North America and Europe. It's focused on high-growth product categories that include plant-based foods and beverages, coffee creamers and premium dairy products. Is it the next multi-billion dollar M&A play to rally the restructuring consumer sector?

    Takeover Target:

    According to global leading special situations advisor on Spinoffs, TSR (The Spinoff Report, SpinoffReport.com), with a notable premium over today's value, WWAV could be a potential takeover target in the long term owing to its high growth, higher margin business profile and leadership position in the US's healthy milk products segment. From their exclusive fundamental analysis, they believe that other packaged food firms like $48bn French based fresh milk, baby food and yogurt giant Danone (BN), $228bn Swiss based nutritional, snack food, and health-related major consumer goods company Nestle (NESN) will be interested buyers and find WWAV as such, an attractive takeover target.

    Other Suitors?

    TSR also see other multinational packaged-foods rivals of WWAV like Kraft Foods Group, Inc. (KRFT), which itself went through a Spinoff last summer and has a rich history of making value oriented and market share enhancing M&A deals. TSR see another two large peers that are currently struggling, facing stiff competition and could benefit notably from the acquisition of WWAV.

    Outperforming the S&P500 by over 6x, both DF and WWAV are recommended holdings of The Spinoff Report's Model Portfolio. It contains their pre-event research recommendations to clients over the past 5 years plus.

    Speaking to TSR's Founder, Jim Osman, he stated: "We believe the growing consumer preference towards healthy plant based and organic milks makes WWAV an attractive buyout target for multinational foods & beverage companies; helping grant instant access to a large-scale local production and distribution infrastructure as well as expand the company's operations to the high-growth categories".

    Stocks: WWAV, DF, KHC
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