Arcapita completes US company sale for $740m
Manama, May 31, 2014
Arcapita, a global investment management firm headquartered in Bahrain, said it has completed the sale of US-based Varel International Energy Services, a leading manufacturer of drill bits for the oil and gas, and mining and industrial industries for $740 million to Sweden-based Sandvik AB.
An agreement to sell Varel was signed with Sandvik in January this year. The financial closing was recently completed after obtaining regulatory approvals and completing environmental due diligence, said the company in a statement.
On the profitable exit, Arcapita CEO Atif A. Abdulmalik, said: “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.”
Kevin Keough, the global head of portfolio management, 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,'" he added.
Headquartered in Texas, US, 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 US, Mexico, France, Scotland and Russia.
In addition the company has significant regional sales and service or research facilities in the US, Canada, Peru, France, the UAE, Kazakhstan, Malaysia and Australia.-TradeArabia News Service