Western Atlas to Spin Off Unit
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Beverly Hills-based Western Atlas Inc. said Monday that it will spin off its industrial automation unit, which accounts for about half the company’s $3.1 billion in annual revenue.
The new company will be composed of Western Atlas’ automated data-collection, mobile-computing and manufacturing systems units. It will be based in Beverly Hills and have estimated annual revenue of $1.5 billion. The Western Atlas name and senior management will remain with the company’s Houston-based oil field services unit.
The move continues the trend of splitting companies with disparate elements to meet Wall Street’s preference for companies focusing on a coherent group of operations. Western Atlas itself was a spinoff from Woodland Hills-based Litton Industries Inc. three years ago.
Western Atlas shares surged nearly 10%, rising $6 to close at $67.375 on the New York Stock Exchange.
All shares of the new firm will be distributed to holders of Western Atlas common stock.
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