Sandvik has reached an agreement to acquire Varel International Energy Services (Varel) for approximately $740 million. Varel is a global supplier of drilling solutions. The key customer segment is in the oil and gas sector, with some exposure to the mining and construction industries. Varel will form a new product area within the business area Sandvik Venture. "The acquisition continues to position Sandvik in attractive growth segments where we will deliver solutions that increase customers' productivity. This is in line with Sandvik's growth ambition and a way to leverage our technical knowhow and Varel's market position," said Olof Faxander, President and CEO, Sandvik.