Sandvik in Varel swoop

SANDVIK has agreed to buy Varel International Energy Services Inc.
The acquisition price amounts to approximately 740 million USD. The closing of the acquisition is subject to standard regulatory approvals and certain environmental due dilligence.
Varel is a global supplier of drilling solutions focusing on drill bits, downhole products for well construction and well completion. The key customer segment is in the Oil and Gas sector, with some exposure to the mining and construction industries.
The manufacturing sites are located in Aberdeen, Houston (USA), Matamoros (Mexico), Tarbes (France) and Kurgan (Russia). The head office is based in Carrollton,Texas, USA.
Revenues in 2013 were approximately 340 million USD and number of employees about 1,300. The acquisition is expected to be slightly accretive to earnings per share already in the first year.