National Oilwell Varco Announces Plan to Pursue Spin-Off of Distribution
Business into Separate Publicly Traded Company
HOUSTON -- September 24, 2013
National Oilwell Varco, Inc. (NYSE: NOV) announced today that its Board of
Directors has authorized Company management to move forward with exploration
of a plan to spin-off NOV’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
via a tax-efficient spin-off to NOV shareholders.
Pete Miller, Chairman and CEO of National Oilwell Varco, remarked, “Through
the hard work and dedicated efforts of its employees, and with last year’s
acquisitions of Wilson Supply and C.E. Franklin, we believe the Company’s
distribution business now has the market size and scale to operate as a
standalone, world class, distribution company. 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. This
distribution company will be a leading, pure play, provider of maintenance,
repair and operating supplies to the global energy and industrial markets, and
poised for continued profitable growth.
We believe that the contemplated spin-off is very consistent with NOV’s
strategy and commitment to continue to grow the Company and create significant
shareholder value. This is the right business move for both companies. As
separate companies, the distribution business and the remainder of NOV will
each be better positioned and have the enhanced operational flexibility to
focus on their specific products, services and customers.”
The spin-off is expected to be completed in the first half of 2014 and 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
Credit Suisse Securities (USA) LLC is serving as the financial advisor to the
Company and Locke Lord LLP is serving as its legal advisor.
National Oilwell Varco is a worldwide leader in the design, manufacture and
sale of equipment and components used in oil and gas drilling and production
operations, the provision of oilfield services, and supply chain integration
services to the upstream oil and gas industry.
Statements made in this press release that are forward-looking in nature are
intended to be "forward-looking statements" within the meaning of Section 21E
of the Securities Exchange Act of 1934 and may involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to documents filed by National Oilwell
Varco with the Securities and Exchange Commission, including the Annual Report
on Form 10-K, which identify significant risk factors which could cause actual
results to differ from those contained in the forward-looking statements.
National Oilwell Varco, Inc.
Jeremy Thigpen, (713) 346-7301
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