Jim Cramer has always said that sometimes the easiest way for a company to create value is to split itself up into understandable parts for investors.
The "Mad Money" host has been a huge fan of the school of thought that breaking up is easy to do. The question is how they choose to do it. Management in some companies choose to shed their poorly performing divisions, while others choose to unlock value by splitting up into a multi-division company.
On Tuesday, Cramer heard terrific news of two top companies choosing to split up to bring out more value—Baxter International and RR Donnelley. Cramer has been pushing for Baxter to split up for ages, and even dedicated a chapter to it in his book "Get Rich Carefully." He pushed for it to broken up into a slower growing, methodical device company, and a fast ramping biosciences company.
Sure enough, the Baxter board agreed to provide investors with a special dividend called Baxalta which was made up of top blood franchise drugs. Investors received Baxalta on July 1, and Cramer immediately praised it as a way to get exposure for the company.