National Oilwell Varco Board Authorizes Spin-off Of Distribution Business

(RTTNews) - Oilfield equipment maker National Oilwell Varco, Inc. (NOV) Tuesday said its board has authorized the planned spin-off of its distribution business from the remainder of the company, creating two stand-alone, publicly traded corporations.

The Houston, Texas-based company believes that the separation of the business can be accomplished through a tax-efficient spin-off to its shareholders. The spin-off is very consistent with its strategy and commitment to continue to grow the firm and create significant shareholder value, it said.

Pete Miller, chairman and CEO of the company said, "As a separate company, the distribution group would have over 415 locations and operations in 26 countries, representing approximately 85% of the revenue of NOV's Distribution and Transmission Segment for the six months ending June 30, 2013."

The distribution company will provide maintenance, repair and operating supplies to global energy and industrial markets.

NOV expects the spin-off to be completed in the first half of 2014. It is subject to market conditions, customary regulatory approvals, execution of separation and inter-company agreements and final board approval.

The separation of the distribution business from the rest of NOV does not require shareholder approval.

Credit Suisse Securities (USA) LLC is serving as financial advisor and Locke Lord LLP as legal advisor.

NOV closed Monday's regular trading at $78.50 on the NYSE. In the pre-market activity on Tuesday, the shares are currently up 1.9 percent.