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Dover Corp. to spin off Wellsite in The Woodlands from Fuel Fix via Houston Chronicle Dover Corp. to spin off Wellsite in The WoodlandsJordan Blum, Houston Chronicle Industrial equipment manufacturer Dover Corp. said it will spin off its energy business as a new publicly traded company, called Wellsite, with a headquarters in The Woodlands. The plans for Wellsite as an oilfield services and equipment manufacturer will mean a major Houston-area presence, especially in The Woodlands, where much of Dover's energy offerings already are consolidated. Dover's artificial lift, energy automation, Cook Compression and Accelerated Companies businesses are all based in The Woodlands now. Dover Artificial Lift was previously Norris Production Solutions. Dover also has locations for its Norriseal Wellmark and bearings businesses in Houston. Dover Energy President Sivasankaran "Soma" Somasundaram, who lives in the Houston area, also will become president and CEO of Wellsite when the spinoff is completed next year. Wellsite will have about 3,000 employees, including nearly 400 in the Houston area, according to a Dover spokesperson. Dover Corp. President and CEO Robert Livingston said the deal is an important part of Dover's transformation into a company with a narrower focus on its core businesses. Dover has faced shareholder activism pressure in recent months to shed its energy business, which dragged the company down financially during the recent oil price bust. Now, the spinoff can occur when the energy sector is slowly recovering. "The spin-off creates a strong new company poised to excel in the upstream oil and gas markets, with particular strength in U.S. shale basins," Livingston said in the announcement. "Wellsite has world-class businesses and is known for its differentiated technology, leading brands and superior customer service." Wellsite looks like an attractive investment entering the market with a Wall Street value of more than $2.2 billion, according to an analyst note from Houston investment banking firm Tudor, Pickering, Holt & Co. |
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