By Bailey Lipschultz
(Bloomberg) --
A group of highly-anticipated spinoffs
stumbled out of the gate this week as a wave of selling across
the market took a heavy toll on household names.
Frosted Flakes maker WK Kellogg Co.’s split from Kellanova
was met with a thud as investors dumped consumer staples stocks,
while environmental-solutions firm Veralto Corp. — separated
from Danaher Corp. — and Aramark’s Vestis Corp., which runs a
uniforms and workplace supplies business, spiraled downward.
“These are the first things to get hit when the market is
lower and that creates an opportunity for investors,” Jim Osman,
founder of special situations research firm The Edge Consulting
Group, said by phone. “We’re seeing some great names under some
real pressure.”
Through Friday morning, WK Kellogg shares had erased nearly
one-third of their value since their so-call regular-way trading
began on Monday after the deal completed. Meanwhile, Vestis had
tumbled 23% and Veralto sank 12%.