Bahrain- based investment company Arcapita signed an agreement to sell Varel to Sweden-based Sandvik AB for a total of $740 million. The agreement was signed in January 2014 while financial closing was completed recently, following the completion of regulatory approvals and due diligence.
“We are pleased with the attractive outcome for investors in Varel from this profitable exit. It reflects the quality of the world-class company that we have built with Varel’s management team,” said Atif A. Abdulmalik, CEO, Arcapita.
Varel International Energy Services, Inc. (Varel) is leading manufacturer of drill bits for the oil and gas, and mining industries. The company has its headquarters in Texas and operates in more than 60countries.
“When we bought the company in 2007, we knew we were buying a solid company with a really strong management team and our add-on acquisition of DHP in 2008 enhanced that platform. Since our acquisition, Arcapita remained committed to supporting the company’s global growth strategy despite the industry downturn that began in 2008,” said Kevin Keough, global head of portfolio management, Arcapita.
Varel employs over 1,300 personnel and has primary manufacturing and management facilities in the United States, Mexico, France, Scotland and Russia. The company has sales and service facilities in the UAE, Kazakhstan, Malaysia, United States, Canada, Peru, Australia and France.
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