REFILE-UPDATE 1-Dover to spin off upstream energy businesses

(Corrects company name to Dover Corp from Dover Crop in paragraph 1)

Dec 7 (Reuters) - U.S. industrial equipment maker Dover Corp said on Thursday it plans to spin off its upstream energy businesses into a standalone, publicly traded company, following a strategic review announced in September.

The upstream energy businesses, collectively called Wellsite, make oil and gas production equipment and diamond cutters used in oil and gas exploration.

Wellsite is expected to generate about $1 billion in annual revenue and earnings before interest, taxes, depreciation and amortization of about $250 million on a pro-forma basis in 2017.

The spin off, expected to be completed by the second quarter of 2018, will be tax-free to Dover shareholders.

Wellsite is expected to raise $700 million to $800 million of debt, which will be paid to Dover in the form of a dividend.

The company said it expects share repurchases of $1 billion in 2018, including the use of cash from the Wellsite dividend. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)

12/07/2017 17:04

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