Dover to spin off some communication technologies businesses
(Reuters) - Industrial conglomerate Dover Corp (DOV.N: Quote) said it plans to spin off some of its communication technologies businesses into a publicly traded company with annual revenue of about $1.3 billion.
The businesses, to be folded into the company's Knowles Corp subsidiary, will make microphones, speakers, receivers and transducers, among other communication products.
The company said that the transaction would be in the form of a 100 percent distribution of the stock of Knowles, which will be tax-free for Dover and U.S. shareholders.
Dover said its annual revenue for 2013 would be $7.4 billion to $7.6 billion, on a proforma basis, upon completion of the deal, which is expected in early 2014. Revenue in 2012 was $8.1 billion.
Dover said it would record one-time costs of between $60 to $70 million related to the transaction.
The new company's brands will include Knowles, Sound Solutions, Dielectric, Novacap, Syfer and Vectron. Dover bought Knowles Corp, a maker of acoustic products, in 2005 for $750 million.
The expanded Knowles Corp will be headed by Jeffrey Niew, who currently runs Dover's communication technologies segment.
"Given the evolution of their unique business model, these businesses can now pursue a more aggressive growth strategy together as a standalone company," Chief Executive Robert Livingston said in a statement.
Dover's other products include industrial pumps, oil and mining drilling tools and food packaging equipment. Continued...