(Adds details on the spin off)
Dec 7 (Reuters) – U.S. industrial equipment maker Dover Cropsaid on Thursday it plans to spin off its upstreamenergy businesses into a standalone, publicly traded company,following a strategic review announced in September.
The upstream energy businesses, collectively calledWellsite, make oil and gas production equipment and diamondcutters used in oil and gas exploration.
Wellsite is expected to generate about $1 billion in annualrevenue and earnings before interest, taxes, depreciation andamortization of about $250 million on a pro-forma basis in 2017.
The spin off, expected to be completed by the second quarterof 2018, will be tax-free to Dover shareholders.
Wellsite is expected to raise $700 million to $800 millionof debt, which will be paid to Dover in the form of a dividend.
The company said it expects share repurchases of $1 billionin 2018, including the use of cash from the Wellsite dividend.(Reporting by Ankit Ajmera in Bengaluru; Editing by MajuSamuel)