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.