Varel’s main customers come from the oil and gas sector, with some in the mining and construction industries. Its manufacturing sites are located in Houston, USA, Matamoros, Mexico, Aberdeen, Scotland, Tarbes, France, and Kurgan, Russia, while its head office is based in Carrollton, Texas, USA.
Varel’s revenues in 2013 were around US$340 million and it employs about 1,300 people.
Sandvik says that Varel will form a new product area within its Sandvik Venture business area.
"The acquisition forms a platform to enable Sandvik to enter into drilling solutions in the oil and gas sector,” said Tomas Nordahl, president of Sandvik Venture. “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.”
"The acquisition continues to position Sandvik in attractive growth segments where we will deliver solutions that increase customers' productivity,” said Olof Faxander, Sandvik's president and CEO.