Fortive stocks surges after plan to separate into 2 publicly traded companies
Shares of Fortive Corp. jumped 3.2% in premarket trading Wednesday, after the industrial technology company announced a plan to separate into two independent, publicly traded companies. One of the new companies will be an industrial technology company, and retain the Fortive name, that generates “significant” recurring revenue, has “highly attractive” margins and “strong” free cash flow. The other, NewCo for now, will be an industrial company focused on the transportation and mobility markets. The separation is expected to be completed in the second half of 2020. Current Chief Executive James Lico and Chief Financial Officer Charles McLaughlin will continue in their roles with Fortive after the separation. “As separate companies, each business will benefit from increased strategic focus and enhanced flexibility to invest in distinct organic and inorganic growth opportunities,” Lico said. “We are confident this will create additional opportunities and enhanced value for our employees, customers and other stakeholders.” The stock has lost 17.3% over the past 12 months, while the SPDR Industrial Select Sector ETF has slipped 3.0% and the S&P 500 has gained 0.3%.
Source : MTV
