History of Varel International

Founded in 1947, Varel Manufacturing Company was privately held by the Varel family. In 1998 the company was acquired through a management buy-in, led by Jim Nixon, current President and CEO of “New Varel," supported by 3i plc and the University of Texas Investment Company (UTIMCO). This new structure resulted in what is known as Varel International or “New Varel.”

Using patented drill bit technologies and emerging drilling technologies “New Varel” aligns its engineering and manufacturing capabilities to provide customers in the global mining/industrial and oil & gas markets with high-quality products that deliver reliability and optimum performance at the lowest cost per foot.

Varel International provides a comprehensive range of Roller Cone, PDC, and diamond bits, and has manufacturing facilities in Carrollton, Texas; Houston, Texas; Matamoros, Mexico; and Tarbes, France.

In June 2005, Varel was acquired by KRG Capital Partners, a private equity firm headquartered in Denver. With KRG's financial and strategic support, Varel continued its customer-centric focus on drill bit innovation, engineering support and geographic coverage. Through expenditures in cutting-edge manufacturing equipment and facilities, systems and human capital, Varel accelerated its market share expansion in the rapidly growing markets it serves. With KRG’s support, Varel flourished. The company invested heavily to increase productivity and efficiencies in all of their manufacturing plants and supply chain processes. During this period, Varel added new technologies including Tough-Drill PDC drill bits and Jet Air Journal Bearing drill bits. These products helped the company gain important market share and Varel soon became recognized as the “fastest growing drill bit company”—an honor all Varel employees take pride in.

In the summer of 2007, Varel acquired its largest distributor—Pendemak Industries. Based in Edmonton, Pendemak was Varel’s Canadian representative for oil and gas products. The acquisition was smooth and easy; all employees of family-owned Pendemak were welcomed into the Varel family.

As a result of the company’s impressive growth, in November 2007 Varel was sold to an affiliate of Arcapita Inc. for $369 million. This new ownership is set to further enable the company’s global expansion and ensure continued product development for oil & gas and mining/industrial drill bits.