Oilfield services giant National Oilwell Varco (NOV) has decided to spin off their equipment distribution business into an independent company through an initial public offering made as early as next year. The company expects this plan to be completed as early as the first half of 2014.
NOV CEO Pete Miller said that the distribution business contributed roughly 20% to the company’s revenue and is now at the size of a fully-operational company.
The Houston-based company’s distribution business sells maintenance, repair and operating supplies to the industry, with approximately 415 locations in 26 countries. In 2012, the made two large acquisitions related to the distribution side of their business that caused substantial growth: CE Franklin; and Wilson.
“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,” NOV CEO Peter Miller said.
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