M&A Deal Summary

Sandvik Acquires Varel Energy Solutions

On February 10, 2014, Sandvik acquired energy services and equipment company Varel Energy Solutions from Arcapita for 740M USD

Acquisition Highlights
  • This is Sandvik’s 2nd transaction in the Energy Services and Equipment sector.
  • This is Sandvik’s largest (disclosed) transaction.
  • This is Sandvik’s 4th transaction in the United States.
  • This is Sandvik’s 1st transaction in Texas.
Investment Fate
  • Varel Energy Solutions was divested to a consortium of buyers in 2019.

M&A Deal Summary

Date 2014-02-10
Target Varel Energy Solutions
Sector Energy Services and Equipment
Buyer(s) Sandvik
Sellers(s) Arcapita
Deal Type Add-on Acquisition
Deal Value 740M USD

Target

Varel Energy Solutions

Houston, Texas, United States
Varel Energy Solutions is a manufacturer and supplier of high-quality roller cone and fixed cutter drill bits. The company's proprietary design capabilities, efficient manufacturing, and global sales force uniquely position to provide drill bits that deliver outstanding performance and value to customers. VIES is comprised of three business units: Varel Oil & Gas Drill Bits, Varel Mining, and Downhole Products. Varel Energy Solutions was founded in 1947 and is based in Houston, Texas.

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Buyer(S) 1

Buyer

Sandvik

Stockholm, Sweden

Category Company
Founded 1862
Sector Engineering
Employees40,344
Revenue 126.5B SEK (2023)
DESCRIPTION

Sandvik operates as a global engineering company. Sandvik is a high-technology and global industrial group that produces products and services that enhance customer productivity, profitability and safety. Sandvik was founded in 1862 and is based in Stockholm, Sweden.


DEAL STATS #
Overall 9 of 55
Sector (Energy Services and Equipment) 2 of 2
Type (Add-on Acquisition) 6 of 49
State (Texas) 1 of 2
Country (United States) 4 of 23
Year (2014) 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-02-28 Hydramatic Engineering Pty

Redhead, Australia

Hydramatic Engineering was founded in 1972 to design and manufacture high quality roof bolting machines, drilling rigs and associated equipment for use in the underground coal mining industry. This highly specialised mining equipment is used to install roof and rib bolts and support the overlying strata of underground mines and tunnels.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-18 Sandvik - Mining Systems Operations

Stockholm, Sweden

Sandvik - Mining Systems Operations is a supplier of design and engineering of material handling systems for the mining industry.

Sell -

Seller(S) 1

SELLER

Arcapita

Manama, Bahrain

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1997
Size Mega
Type Sector Agnostic
DESCRIPTION

Arcapita is a private investment firm with separate investment disciplines spanning venture capital, corporate investment, real estate, and asset-based investments. Arcapita's Corporate Investment practice looks to acquire controlling interests in established companies valued between $50 million and $500 million. Sectors of interest include consumer products/services, healthcare, energy, technology, and manufacturing. Arcapita's infrastructure team looks to invest $50 to $300 million in energy, water, and transportation assets. The Firm will consider opportunities around the globe; including the United States, Latin America, Russia, China, Europe, Middle-East, and India. Arcapita was formed 1997 and has offices in Manama, Bahrain; Atlanta, Georgia; London; and Singapore.


DEAL STATS #
Overall 24 of 33
Sector (Energy Services and Equipment) 2 of 2
Type (Add-on Acquisition) 14 of 16
State (Texas) 2 of 2
Country (United States) 17 of 23
Year (2014) 1 of 3
Size (of disclosed) 2 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-10-16 P3 Parks

Prague , Czech Republic

P3 Parks is a pan-European logistics real estate operating company active in managing, leasing, and developing logistics warehouses. P3’s mission is to provide warehouse customers with a first-rate occupancy experience in high-quality assets in key logistics locations. P3 Parks was founded in 2001 and is based in Prague, Czech Republic.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-10 Tensar

Alpharetta, Georgia, United States

Tensar is a global provider of innovative subgrade soil reinforcement solutions, selling into more than 80 national markets through its two major product lines: Tensar geogrids and Geopier foundation systems. Geogrids are polymer-based products used for ground stabilization, soil reinforcement, and asphalt optimization in construction applications including roadways, public infrastructure, and industrial facilities. Tensar originated geogrid technology, which reduces aggregate consumption, thereby decreasing construction time, expense, and the project owner's cost of lifetime maintenance. The company also has a large portfolio of proprietary products. Tensar was formed in 1983 and is based in Alpharetta, Georgia.

Sell $400M