On April 1, Integra Life Sciences (NASDAQ:IART) filed a 10-12B, proposing to spinoff SeaSpine Holdings (proposed ticker NASDAQ:SPNE). Part of the rationale of the spinoff was that the company fielt that the market did not properly value its shares.
For 2014, IART had operating income of $65.54m SeaSpine had been making losses of $20.3m. So, if you separate out the businesses, IART would be making about $83.4m in operating profits. IART has a market cap of $2120m, so its revenues to operating profits would be about 25 (2120/83.4).
That still looks pretty high to me, and I struggle to see an investment opportunity in either IART or its spinoff. SeaSpine looks to have never made a profit.
If anyone can offer a different take on the situation, I’d be glad to hear it.