Please ensure Javascript is enabled for purposes of website accessibility

Dover Completes Spinoff and Distributes Shares of Apergy

By Daniel Miller – May 9, 2018 at 1:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of Dover adjust after completing spinoff and distributing shares of Apergy as it begins trading as a separate entity.

What happened

Depending on what numbers or charts you're viewing, it might appear that Dover Corporation (DOV -0.33%), an industrial conglomerate operating in multiple business segments, has shed roughly 18% of its value overnight. But fear not, Dover merely completed the spinoff of Apergy (APY).

So what

At 12:01 a.m. EDT, Dover shareholders were distributed one share of Apergy Corporation for every two shares of Dover stock they held as of 5 p.m. EDT April 30, 2018. Dover will receive a one-time cash payment of $700 million from Apergy with the completion of the spinoff -- for more information on how spinoffs alter stock prices, check this out.

"Today marks the beginning of an exciting new chapter for Apergy," said President and Chief Executive Officer Sivasankaran "Soma" Somasundaram in a press release. "As an independent public company with industry-leading technologies and brands, Apergy is well positioned to pursue strategies that are specific to the drilling and production sectors, and accelerate value creation for both our customers and shareholders."

A person pulling a gasoline pump handle out of a gas pump.

Image source: Getty Images.

Now what

The spin-off will create a more stable remaining business at Dover as it removes the more volatile and leveraged part of its business. Removing that uncertainty, which dragged on its top and bottom lines during bad times, could unlock higher price-to-earnings multiples for the company and improve shareholder value.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dover Corporation Stock Quote
Dover Corporation
DOV
$119.75 (-0.33%) $0.40
ChampionX Corporation Stock Quote
ChampionX Corporation
APY

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.