TriMas: A Very Interesting Sum Of The Parts Case
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The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryTriMas is transforming after announcing a $1.45 billion sale of its aerospace business, representing 75% of its enterprise value.TRS's sum-of-the-parts valuation post-sale could approach $40 per share, driven by packaging and specialty products segments.Management launched a $150 million buyback program, timed after the aerospace divestment, supporting shares and potentially limiting downside.I see compelling value on dips near $30, contingent on tax treatment and capital allocation following the aerospace transaction. Pavel Kot/iStock via Getty Images In February 2023, I called TriMas (TRS) a packaging player with growing ambitions. Despite having traded flattish in a $20-$40 range over the past decade, there was potential even as the business performance was quite stable, perhaps to be called uninspiring.This article was written byThe Value Investor27.38K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TRS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You