Dover Corporation (DOV)

[eFinanceMarkets]

$DOV WSJ: Dover exploring strategic alternatives for energy unit

Dover (NYSE:DOV) is exploring strategic options for most of its energy business, including a merger, spinoff or sale that could fetch $3B-$4B, WSJ reports.

DOV’s energy business works with companies in the drilling and production markets on products such as pumps, sensors, artificial lifts and monitoring devices; it accounts for ~16% of DOV’s overall revenue.

Energy is a cyclical business for DOV and is subject to fluctuations in oil prices; revenues in the sector last quarter rose 39% after weighing on earnings last year as energy companies struggled with lower oil prices.

Shares rallied into the close, finishing +2.5% after trading slightly in the red prior to the report.