Varco Acquires Elmar Group

Varco International announced that it has acquired, through a subsidiary, the capital stock of Elmar Services Limited. Elmar, based in Aberdeen, is a leading designer and manufacturer of wireline pressure control equipment for servicing oil and gas wells, and a major supplier of perforating gun carriers and tubular services. Elmar is expected to complement Varco's leading market positions in coiled tubing and wireline equipment. Elmar generated $36 million in revenues in its fiscal year ended July 31, 2001. Terms of the sale were not announced.

"Varco's acquisition of Elmar significantly strengthens its leading position in the provision of highly-engineered equipment to the world's oil and gas well servicing industry," remarked George Boyadjieff, chairman and CEO of Varco. "We are pleased to welcome Elmar's team to our group, and to offer its pressure control technologies to our customers. Additionally, Elmar's perforating gun business will expand Varco's own perforating gun sales." Elmar conducts design, manufacturing, service and rental operations from Aberdeen, Scotland; Perth, Australia; Houston and Victoria, Texas; Edmonton, Alberta; and Dubai. The company employs 257 people. KPMG Corporate Finance advised Elmar's shareholders on the transaction.