MANAMA: Arcapita, a global investment management firm headquartered in Bahrain, on Saturday said that it had completed a profitable exit from Varel International Energy Services, Inc. (Varel), a leading manufacturer of drill bits for the oil and gas, and mining and industrial industries to Sweden-based Sandvik A.B. for a total transaction value of $740 million.
An agreement to sell Varel was signed with Sandvik in January 2014. The financial closing was recently completed after obtaining regulatory approvals and completing environmental due diligence.
“We are pleased with the attractive outcome for investors in Varel from this profitable exit. It reflects the quality of the world-class company that we have built with Varel’s management team,” Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said.
“When we bought the company in 2007, we knew we were buying a solid company with a really strong management team and our add-on acquisition of DHP in 2008 enhanced that platform. Since our acquisition, Arcapita remained committed to supporting the company’s global growth strategy despite the industry downturn that began in 2008,” Kevin Keough, Arcapita’s Global Head of Portfolio Management, added.
Headquartered in Texas, United States, Varel conducts business in over 60 countries through its operating divisions. The company employs over 1,300 personnel and has primary manufacturing and management facilities in the United States, Mexico, France, Scotland and Russia. In addition the company has significant regional sales and service or research facilities in the United States, Canada, Peru, France, the UAE, Kazakhstan, Malaysia and Australia.