Breaking up may be hard to do, but when it comes to a play like MeadWestvaco it can also be lucrative.
“So far, 2011 has felt like the year of the breakup,” said “Mad Money” host Jim Cramer on Tuesday. “And practically every single time one of these spin-offs happens, the shareholders end up making oodles of money.”
Recent company splits have seen healthy increases in share value.
- Marathon Oil rallied 21 percent in January upon announcing it would spin off its refining business.
- ITT, too, popped 16 percent the day the breakup made headlines.
- McGraw-Hill gained 12.2 percent since its split was announced in September.
- Kraft, which Cramer recently highlighted, also received positive guidance on its breakup plans.
Last week, packaging company MeadWestvaco announced it would split its office and school supplies business and merge it with ACCO Brands in a two-step reorganization.