National Oilwell Varco Plans To Spin-off Distribution Business - Quick Facts

(RTTNews) - National Oilwell Varco Inc. (NOV) announced Tuesday that its board has authorized the company to move forward with exploration of a plan to spin-off the company's distribution business from the remainder of the Company, creating two stand-alone, publicly traded corporations. The company believes that the separation of the distribution business can be accomplished through a tax-efficient spin-off to its shareholders.

Pete Miller, Chairman and CEO of National Oilwell Varco 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 company expects that the spin-off will be completed in the first half of 2014. It is subject to market conditions, customary regulatory approvals, the execution of separation and intercompany agreements and final board approval.

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