Varel International Energy Services Named to 2011 Inc. 5000 List with Three-Year Sales Growth of 23%

(CARROLLTON, TEXAS- 30 August 2011) - Varel International Energy Services, parent company of Varel International and Downhole Products, announces the company has been named to the fifth annual Inc. 5000 list. The company was listed as 82^nd in the Energy Sector ranking.

The Inc. 5000 is an exclusive ranking which highlights the nation's fastest-growing private companies. This is Varel's third time to be named to the list. "It is difficult to express what an amazing accomplishment this is," said Jim Nixon, Varel CEO and President. "Even in the face of a challenging market, our team pressed ahead and grew our company. It was not an easy road and I am extremely proud of this group; it is truly an honor to once again be part of the Inc. 5000 list."

Varel is listed in the energy category and was selected based on its revenue growth from 2007 to 2010. In the three-year period the company grew from $210.9 million in revenue to $258.3 million; a revenue growth of approximately 23 percent.

Varel is one of the oldest companies on the list, founded in 1947. The company's growth curve accelerated in 1998, with an investor backed buyout initiated by the current management team. Since then, Varel has expanded its reach, acquiring Canadian Pendemak Industries in 2007, which is now Varel Rock Bits Canada

Varel completed the acquisition of Aberdeen-based Downhole Products Plc. in April 2008. This acquisition was supported by Arcapita, Varel's primary investor, with financing support made possible through the Royal Bank of Scotland (RBS).  Most recently, Varel acquired all of the intellectual property assets for Rotary Percussion Systems from Renegade Drilling Tools.

Nixon added, "Being named to this list is not a coincidence, it is the realization of our strategies. Our investors recognized the opportunities Varel has had to grow and they supported our plans. And of course our people were the main engines of success, during our most lean periods they did what they do best and produced for our customers." 

According to Inc. 5000, the median growth rate of 2011 Inc. 500|5000 companies remains an impressive 94 percent. The companies on this year's list report having created 350,000 jobs in the past three years, and aggregate revenue among the honorees reached $366 billion, up 14 percent from last year.

Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/5000.

"Now, more than ever, we depend on Inc. 500/5000 companies to spur innovation, provide jobs, and drive the economy forward.  Growth companies, not large corporations, are where the action is," says Inc. magazine editor Jane Berentson.

Methodology
The 2011 Inc. 500 is ranked according to percentage revenue growth when comparing 2007 to 2010. To qualify, companies must have been founded and generating revenue by March 31, 2007. Additionally, they had to be U.S.-based, privately held, for profit, and independent-not subsidiaries or divisions of other companies-as of December 31, 2010. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2007 is $100,000; the minimum for 2010 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Companies on the Inc. 500 are featured in Inc.'s September issue. They represent the top tier of the Inc. 5000, which can be found at www.inc.com/5000

About Varel International
Founded in 1947, Varel International is the world's largest independent supplier in the global oil & gas drill bit market. Headquartered in Carrollton, Texas, Varel services oil & gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The company employs more than 1,000 people and has manufacturing facilities in Carrollton, Texas; Houston, Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel's proprietary design capabilities, efficient manufacturing, and global sales force uniquely positions the company to provide high-quality drill bits that deliver excellent performance and value to its customer base. For more information, visit http://www.varelintl.com/.

About Inc. Magazine
Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc. (www.inc.com) is the only major business magazine dedicated exclusively to owners and managers of growing private companies that delivers real solutions for today's innovative company builders. With a total paid circulation of 710,106, Inc. provides hands-on tools and market-tested strategies for managing people, finances, sales, marketing, and technology. Visit us online at http://www.inc.com/.

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