"KRG has an excellent track record of transitioning middle market companies striving to the 'next level,'" said Jim Nixon, President and CEO of Varel International. "With KRG's support we will be able to continue our position as one of the fastest growing drill bit manufacturers in the world. Our new partner will allow us to remain committed to investment in new projects and equipment, while continuing to deliver high-performance products to our customers in the global oil & gas and mining/industrial drilling industries. We are honored to be a part of this new team and are committed to continuing to deliver the highest quality and value to our customers, employees and shareholders."
Following KRG's investment, Varel's world headquarters will remain in Carrollton, Texas, a suburb of Dallas. Manufacturing facilities in Carrollton and Matamoros, Mexico will continue to support the roller cone products manufactured for the global oil & gas and mining/industrial industries. Additionally, fixed cutter drill bit manufacturing facilities in Houston and Tarbes, France, and the creation of new sales offices in emerging regions, will support Varel's global marketing and sales objectives for the oil & gas industry.
"Varel's products, technology, and market position, coupled with strong oil & gas and mining fundamentals, make Varel a unique and attractive acquisition," said Chuck Hamilton, Managing Director of KRG Capital Partners, who will serve as Chairman of Varel International. "Through organic growth from existing customers, development of new products and select strategic acquisitions, we believe Varel will be able to increase market share while broadening its customer base and product offering. We believe that the combination of our strategic and acquisition experience, in addition to our ability to provide the necessary capital, will allow Varel to continue its rapid growth trajectory."
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