Bob Evans +22.22% in less than one month
Catalyst Type: Restructuring
Bob Evans farms had 2 business divisions which were growing at very different speeds.
The restaurant division was struggling to rekindle growth, whilst their frozen packaged food division was growing at a healthy pace.
Eventually, an activist investor took a position in the company and campaigned for the break up of the company. The struggling restaurant division was eventually sold to a private equity firm, and the frozen packaged foods division is currently in the midst of a buyout.
We took a position just under $50/share, and we exited on the spike following the news of the restaurant division sale. We were hoping for a pullback to buy back in that never materialised. Nonetheless, it was a good return for a short holding period.
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