Sandvik has reached an agreement to acquire Varel International Energy Services (Varel) for approximately $740 million, subject to the standard regulatory approvals as well as 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, but it also has a significant presence in the mining and construction industries. The manufacturing sites are located in Houston (US), Matamoros (Mexico), Aberdeen (Scotland), Tarbes (France), and Kurgan (Russia). The head office is based in Carrollton, Texas.Revenues in 2013 were approximately $340 million and number of employees about 1,300. Varel will form a new product area within the business area Sandvik Venture. “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. I am very impressed by the Varel team and I am excited about our joint opportunities going forward”, said 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.