Jim Cramer believes this company is about to create immense value with the stroke of a pen.
"And all they're doing is simply splitting into smaller, cleaner, more easily understood pieces," he said.
Cramer is talking about Covidien, a medical device company, that's spinning off its pharma division which will be called Mallinckrodt.
"Ever since December of 2011, I've been telling you that this move would create immense value, and sure enough, in the time since, Covidien has generated a 56% return," Cramer said.
Now that spin-off is imminent - Mallinckrodt is expected to break away completely by the end of the month.
"Covidien shareholders of record as of June 19th will receive one share of Mallinckrodt—the pharma business—for every eight shares of Covidien they own when the spin happens on June 28th," Cramer explained.
And that begs the question – what's an investor to do now?
"My original thesis was that Covidien's terrific medical device business was being dragged down by a not so hot pharma division; the point of the break up was to separate the strength from the weakness," Cramer said.
However, Cramer would not immediately sell Mallinckrodt . "I think you want to hold on to both," he said.
Now make no mistake; just because Cramer advocates holding both doesn't mean he advocates viewing both in the same way.