Sandvik has agreed to divest the majority of their Drilling & Completions business unit (Varel) to Blue Water Energy and former Varel CEO Jim Nixon via Nixon Energy Investments. Sandvik will retain a 30% interest in the company. Sandvik will retain the mining-related part of the Drilling & Completions business. The transaction price is SEK 900 million on a cash and debt-free basis.
The deal was announced in October 2019 and is expected to close in the first quarter of 2020. Varel announced in March 2020 that Blue Water had made a multi-million dollar investment in the company to pursue international expansion and acquisitions in the completions products business.