Varel International Energy Services to be acquired by Sandvik
HOUSTON -- Varel International Energy Services, the parent company of Varel International and Downhole Products, has agreed to sell the company, in its entirety, to Sandvik. The acquisition price amounts to approximately $740 million. The closing of the acquisition is expected to occur during first-half 2014.
Privately held VIES conducts business in more than 60 countries through three operating divisions: Varel Oil & Gas Drill Bits, Varel Mining & Industrial, and Downhole Products (DHP). The company employs more than 1,300 people, and has primary manufacturing and management facilities in Carrollton and Houston, Texas; Matamoros, Mexico; Pau and Tarbes, France; Aberdeen, UK; and Kurgan, Russia.
Sandvik is a high-technology engineering group with advanced products and positions in selected areas: tools for metalworking; machinery and tools for rock excavation; stainless steel; special alloys; resistance heating materials; and process systems. Headquartered in Sweden, Sandvik operates in more than 130 countries. The VIES purchase represents one of the larger acquisitions in Sandvik' s corporate history and, once completed, will be the company' s first major entry into the upstream oil and gas industry.