SANDVIKEN, Sweden – Sandvik AB has reached an agreement to acquire Varel International Energy Services Inc. (Varel) for $740 million.
Varel is a global supplier of drilling solutions focusing on drill bits and downhole products for well construction and well completion. The company is headquartered in Carrollton, Texas.
Varel will form a new product area within the business area Sandvik Venture. The closing of the acquisition is expected to occur within the first six months of 2014. The acquisition forms a platform to enable Sandvik to enter into drilling solutions in the oil and gas sector.