Houston’s Oil States International, an energy services firm, said Tuesday it will spin off its housing business, creating two standalone companies.
“In recent years we have successfully grown Oil States and created significant value for shareholders, and we believe that the spin-off of the Accommodations business could further that shareholder value creation,” said Cindy B. Taylor, Oil States’ President and CEO said in a statement. “The proposed spin-off transaction will result in two distinct companies, each positioned to succeed as a focused global enterprise while continuing to benefit from the size and scale of its high-quality asset base, innovative technology and significant free cash flow generation.”
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After the separation, Oil States will be focused on offering technology and services for deep-water and shale markets. The company’s offshore products segment primarily focuses on the deep-water capital equipment market. Its well site services and tubular services segments primarily focuses on drilling and completion activity in U.S. shale regions.
The accommodations business, which will be renamed before the spin-off, provides temporary and permanent workforce housing and related services. It will focus on continued growth in its existing Canadian oil sands, Australian mining and U.S. shale markets and plans to expand into new regions.
Oil States expects that that the proposed spin-off of its accommodations business can be executed through a tax-free distribution to Oil States shareholders during or before the summer of 2014.