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I'm assuming the whole distribution to shareholders, both the cash from Graco and the spinoff, will be taxed as a return of capital and thus if you purchased recently you would have a capital gain. Let's say you bought some at $8 and we get $9.30 from Graco and a spinoff valued by the company for tax purposes of $1.90. You will incur a capital gains event of $3.20.

I'm no tax expert.

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