This week’s additions and highlights
1. SPIN-OFFS
- MiniMed Group, Inc. (MMED US). MiniMed recently started trading independently after spinning from Medtronic (MDT). As previously mentioned, this is an interesting spin to keep an eye on, as the unit is ~10% of total revenues but is one of the key growth drivers of the group, and also just a fraction of MDT’s market cap. Shares are down c. 6% so far.
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
- Roots Corp. (ROOT CN). Roots has announced a strategic review that could include a full sale of the company. They’ve hired ao JPM to look for buyers (basically). Roots has struggled for years, including the 2020 bankruptcy of its US unit and a multiyear plan focused on closing weak stores and rebuilding profitability. Recent results show some modest sales growth. Still decent EBITDA margins (high-teens) and FCF generation, but debt is still annoying while manageable. <5x EV/EBITDA.
- DSM-Firmenich AG (DSFIR NA). dsm-firmenich finally sold its ANH unit. While the €2.2bn + €0.5bn earn-out was pretty much in line with what we expected, the market didn’t like. Sell the news? Or is the announced buyback too low? Whatever the reason, a reminder that this divestment significantly alters the financial profile of the company, pushing it all to more growth, higher margins, more pricing power. Cyclical headwinds have pushed the share price to strong lows.UPDATE (March 10, 2026) A heads-up for the upcoming Investor Day this Thursday, which could be an interesting catalyst. Dsm-firmenich still has to provide its 2026 outlook, and with the current market turmoil on top of an already very weak sentiment, we would not be surprised of the story will be quite bullish.