The other options being explored by the American manufacturer for separating the business from its Wellsite energy segment include a tax-free spin-off and strategic combination.

Dover president and CEO Robert A. Livingston said the company by implementing its strategic review plans to focus and invest in its core platforms of businesses that have lower volatility and solid growth prospects.

Livingston added: “As a result of our strategic review, we have decided to explore options for separating the Wellsite business. 

“Over the years our teams have built Wellsite into a great set of businesses that are leaders in their markets, differentiated by their technology, customer service and trusted brands, and that have generated high returns for our shareholders.”

Dover's Wellsite business also features Dover Artificial Lift, Dover Energy Automation, and US Synthetic (USS). The Wellsite business has activities in the oil and gas drilling and production industry among other attractive segments, said the company.

Dover Artificial Lift provides a host of artificial lift equipment and solutions. It includes major industry brands such as Norris, Accelerated, Harbison-Fischer, Oil Lift and PCS Ferguson. 

Dover Energy Automation on the other hand offers wellsite productivity software, equipment and IIoT solutions. It includes well-known brands like Norriseal-Wellmark, Spirit, Windrock, Quartzdyne and Theta. 

USS develops and produces polycrystalline diamond cutters that are employed in oil and gas exploration activities.

Dover says that the revenue of Wellsite business in the current year has been estimated to be around $1bn.

The American conglomerate has left out Bearings & Compression and Tulsa Winch Group businesses from the strategic review although they do come under the energy segment.

Dover is likely to complete its review of strategic separation alternatives by the year end.