Varco International Inc. has recently acquired two international businesses.
Varco strengthened its composite pipe manufacturing business in Asia with the acquisition of a business near Shanghai, China, which manufactures fiberglass tubular products used in marine applications. Varco's existing oilfield composite pipe business has manufacturing operations in Harbin, China, and several locations throughout the United States. Varco is a leading provider of composite pipe for oilfield applications under the name FiberGlass Systems.
Varco acquired the thermal drill cuttings processing assets of Maersk Contractors Environmental Division, which operates facilities in Aberdeen and Kazakhstan. The business strengthens Varco's Brandt solids control business, expanding its flowline-to-disposal waste management services. Thermal desorption renders drill cuttings, a by-product of petroleum drilling operations, oil-free and permits their safe disposal. Varco operates seven thermal desorption units around the world.
Varco Chairman and CEO John Lauletta commented, "These businesses strengthen existing product lines and provide catalysts for further growth in some of the most promising oil and gas markets in the world. Collectively, they represent Varco's ongoing commitment to growth through both acquisitions and internal investment in technology and capital."
Although terms of these transactions were not disclosed, each was structured as a purchase of certain assets. Total consideration for the acquisitions was approximately $7 million, and annual sales totals approximately $7 million.