SPIN-OFFS "secret hiding places of stock market profits" Message Board

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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"

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To: ron coleman who started this subject	9/6/2001 11:21:39 AM
From: Steven C. Vartan	of 1185

Goodrich (GR) is planning a spinoff of EIP to be filed in OCt of 2001 and finalized early in 2002. Goodrich (GR, $33, RESTRICTED) Target (12 Months): N/A What's In The News?: Plans to Spin-Off EIP Business Goodrich plans to spin-off its Engineered Industrial Products (EIP) business tax-free to shareholders. Sales for the EIP segment were $690 million in 2000 (about 16% of the company's total sales). The transaction will create two publicly traded companies listed on the NYSE . GR shareholders are expected to receive one share in the new industrial company for every five Goodrich shares owned as of record date for the distribution. Management plans to file with the SEC in late October and expects to complete the spin-off in early 2002. As a result, the company will report EIP results as "discontinued operations" beginning in 3Q01 (tentatively scheduled to be released on October 25th). Management estimates that the newly formed EIP company will generate sales of about $800 million in 2002 and that the new company will have about $190 million in debt. According to management, the new industrial company will include substantially all the assets and liabilities of the EIP segment, including the associated asbestos liabilities and related insurance (which management estimates at about $950 million). Ernest F. Schaub, the current COO of the EIP business, will become the CEO and a director of the new company. The name of the new industrial company, which will be headquartered in Charlotte, NC and have about 5,000 employees worldwide, is expected to be announced soon. We are currently Restricted on further commentary on the stock as CSFB is advising Goodrich on the transaction. Annual EPS (US$) 12/02E - 12/01E - 12/00A 2.97

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