Oil Industry Sandvik Expands Oil and Drilling Solutions with Acquisition of Varel
Sandvik buys into the US oil industry: The Swedes acquire Varel, a Texan drilling solutions for the oil and gas industry for a high three-digit million dollar price. Varel has achieved revenues of US $ 340 million in 2013 with about 1,300 employees.
Stockholm/Sweden; Houston/Teas – The acquisition was completed on 21 May 2014, with integration of Varel into the various Sanvik businesses well underway. "The acquisition forms a platform to enable Sandvik to enter into drilling solutions in the oil and gas sector. The combination of Varel's solid market position and strong customer offering, and Sandvik's broader drilling solutions capabilities as well as the extensive knowledge in highly relevant materials and cutting technology will support Varel's continued growth.", says Tomas Nordahl, President of Sandvik Venture.
"The acquisition continues to position Sandvik in attractive growth segments where we will deliver solutions that increase customers' productivity. This is in line with Sandviks growth ambition and a way to leverage our technical know how and Varel's market position", says Olof Faxander, Sandvik's President and CEO.