Quick Value #314 - New Enviri (NVRI)
Upcoming spin-off / stub shares situation (mid-2026 closing timeframe)
Today’s post:
Sale + spin-off set to close mid-2026
Shareholders get $14.50-16.50/share distribution + spin-off
Stub shares trading at implied 4-5.5x EBITDA with ~2x leverage
SpinCo has earnings tailwinds in 2027-2028 as “loss contracts” roll off
For new subscribers — these write-ups are meant to be a “jumping off point” for the idea generation process (i.e. a surface level review). Each write-up includes: 1) company background; 2) why the idea is interesting; and 3) fair value estimate.
Check out past write-ups here and my home base page here.
Recent write-ups include:
05/01/26 — Ice cream spin-off Magnum looks cheap
04/21/26 — Guide to analyzing “asset plays”
04/13/26 — Beaten down CPG stock Nomad Foods ($)
04/06/26 — Upcoming spin-off at Middleby ($)
03/23/26 — A look at GameStop fundamentals
03/16/26 — Green Dot upcoming sale + spin ($)
03/09/26 — CBIZ growth to value transition
Quick Value
Enviri Corporation (NVRI)
Ticker: NVRI
Price: $4 (implied stub)
Shares: 84.2m
Market cap: $340m
Valuation: 5x EBITDA
Theme: spin-offBackground
In Nov 2025, Enviri announced they will sell their Clean Earth business to Veolia for $3.04bn and “spin off” the remaining businesses as New Enviri to shareholders.
A few things to note about this transaction:
Clean Earth was unquestionably the crown jewel inside Enviri (growing, profitable, high margin, secular trends, etc.)
The $3.04bn sale price was a huge premium at ~19x 2025 segment EBITDA
Shareholders will get a big chunk of the sale proceeds at closing via $14.50-16.50 per share dividend
Remaining segments will roll into into “New Enviri” (maintaining the NVRI ticker) and spun-off to shareholders in a fully taxable spin
New Enviri is “a leading provider of critical environmental services and material processing to the metals industry and innovative equipment, after-market parts and services for the rail sector” with ~$1.2bn pro-forma revenue and 2x leverage
Spin-off docs have been filed and this transaction was already approved by shareholders with a mid-2026 expected closing timeframe
