Varel International has acquired Aberdeen-based, Downhole Products Plc (DHP), a leader in high-end centralizers and reamer shoes utilized in the construction and completion of oil and gas wells. The acquisition was supported by Arcapita, Varel's primary investor, with financing support made possible through the Royal Bank of Scotland (RBS).

Additionally, as part of this acquisition, a new holding company called Varel International Energy Services (VIES) was established. This holding company owns both Downhole Products and Varel International, the world's fastest growing drill bit company.

"This acquisition demonstrates the continued growth and success we are experiencing with our new investors, Arcapita," said Jim Nixon, President and CEO of Varel International. "This transaction includes two important milestones for our company: the creation of Varel International Energy Services-our new holding company-and our first acquisition under Arcapita. Both activities have been part of our strategic growth plan. We appreciate the support given by Arcapita and RBS, our financing partner, with regards to this transaction. Their hard work and cooperation allowed us to close the transaction within a compressed timetable."

Tags: Downhole Products Plc, Varel International