Cramer's 'Mad Money' Recap: Break Up to Make Up

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Nelson Peltz has been the "catalyst shareholder" at both Heinz (HNZ Quote) and Cadbury Schweppes (CSG Quote), Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Peltz has given tips to both companies, and they have listened, Cramer said. On March 15, Cadbury announced that it was splitting in two. Cramer offered up the next two companies he believes should follow in its footsteps.

Breaking up is not hard to do -- just look at American Standard (ASD Quote), where CEO Frederic Poses "created instant value," he said.

There are two companies here that Cramer likes: Clorox (CLX Quote) and ConAgra Foods (CAG Quote). With private-equity firms everywhere, "even in tired, old brands," Cramer believes that any breakup could put a company in play.

Plus, the combination of Clorox's products is "something that makes no sense whatsoever," Cramer said. It makes charcoal and salad dressing -- two businesses that have nothing in common.

ConAgra is another company that has "ailing brands," he said. "It is currently conceived as making a sandwich out of too many ingredients" and needs to be split up.

Both companies, Cramer said, "are in the sweet spot of value creation." They could wake up tomorrow and break into two, three or four companies, or sell their underperforming divisions to "hungry" private-equity firms, he said.

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