Varco Sells Its Facilities in Orange to Cove

Varco International Inc. announced last week that it has completed the sale of its headquarters building and adjacent manufacturing facility in Orange to Cove Development Co. for $7.4 million.

Cove, of Newport Beach, has purchased the facilities for investment purposes.

Varco officials say the sale will give their financially ailing oil drilling tool manufacturer $6 million in cash, which will be used to reduce its long-term debt of approximately $46 million. Varco has been particularly hard hit by the oil industry slump in the last year. The company had been losing money for the last three years and sold the building to raise capital and eliminate overhead expenses.

Results for Varco’s second quarter, however, showed some improvement: The net loss was reduced to $743,000 from $8.3 million for the same period in 1984.