Exterran Plans To Spin-Off Its International, Fabrication Businesses

(RTTNews) - Exterran Holdings, Inc. (EXH) Monday said it has plans to spin-off its international and fabrication businesses into two standalone, publicly traded companies - SpinCo and RemainCo. The company said it does not expect significant job cuts as a result of this.

The separation is expected to result in the technical termination of Exterran Partners for U.S. federal income tax purposes.

Following the transaction, SpinCo's business will have Exterrans' current international contract operations, aftermarket services businesses and the global fabrication business. RemainCo will hold interests in Exterran Partners, L.P. (EXLP) and will operate the rest of the U.S. contract operations and U.S. aftermarket services businesses, which is presently owned by Exterran Holdings.

Both the newly formed companies will have its own independent executive management team and board of directors.

"We believe creating two separate entities, each focused on its unique performance improvement and growth initiatives, will further enhance the competitive position of each business in the U.S. and global oil and gas production infrastructure markets", said Brad Childers, Exterran Holdings' CEO in a statement.

Further, Exterran said SpinCo will retain the rights to the receivables of nearly $159 million, related to the previous sales of Exterrans' assets in Venezuela. Also, it added that dividend policies for RemainCo and SpinCo will be announced before the completion of spin-off.