Acquisition strengthens VES’ focus on the Middle East energy sector as a key market
Workers at Sledgehammer Oil Tools
HOUSTON, July 05, 2022 (GLOBE NEWSWIRE) --
Tie-up creates a consolidated major producer of consumable downhole oilfield products across the Middle East, Asia and European markets.
Combination remains focused on serving major integrated service companies as well as the long-standing history with National Oil Companies across the region.
Company now leverages almost one million square feet of manufacturing footprint, designed to strongly support both Eastern and Western Hemispheres.
Varel Energy Solutions (“VES”) today announced it has acquired Sledgehammer Oil Tools (“Sledgehammer”), an international leader in the supply of oilfield casing, cementing and completion products.
This transaction further strengthens VES’s robust portfolio of casing and cementing products, fueled by the legacy brand of Downhole Products, enabling the organization to offer one of the industry’s leading sources of high-quality, low-cost primary cementing equipment to its customers.
Backed by growth capital and poised to build a strong foundation for value-driven manufacturing solutions, VES will leverage its global manufacturing infrastructure combined with Sledgehammer’s supply chain efficiency to deliver value and improved economics around the world even more effectively.
“Varel Energy Solutions is extremely honored to add the extraordinary people and impressive value-driven culture of Sledgehammer to our organization,” said Derek Nixon, President & CEO of VES. “We exist to become the Industry’s Maker of consumable downhole products across the traditional oil and gas and renewable energy sector. While we are committed to serving our customer base, we aim to offer the broader energy service market within improved buying economics, including our historic competitors.”
The acquisition of Sledgehammer incorporates best-in-class engineering, manufacturing, and testing capabilities centered in Northern India, and combined with VES, now positions nearly one million square feet of roofline designed to produce products addressing the challenges of drilling and completions in increasingly complex and cost-sensitive environments.
Founded in 1974, the Sledgehammer organization has built a reputation of high-value products with unrivaled supply chain and manufacturing capabilities; with customers around the world depending on its broadly acclaimed casing, cementing and completions product range. “I am very excited by the opportunities this transaction will create for the employees and customers of Sledgehammer,” said Pradeep Mohanty, Managing Director and Founder of Sledgehammer. “Varel’s extremely strong global presence, commitment to customer service and robust balance sheet will create a platform for even faster growth of our products and people.”
“For this area of business, we are committed to being the economic leader in downhole cementing equipment to the industry, period,” said Jordan Stringer, VES’s EVP of Eastern Hemisphere Operations. “Today’s announcement represents another hugely important step toward this commitment and we are very confident our partnership with the employees of Sledgehammer will result in significant shared success.”
About Varel Energy Solutions
Founded in 1947, Varel Energy Services is one of the world’s largest independent manufacturers and suppliers of downhole drilling and completions products to the energy sector. Headquartered in Kingwood, TX, VES services oil & gas, renewable energy, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits, as well as a complete portfolio of primary cementing equipment. The company employs more than a 1,000 people and has manufacturing facilities in Matamoros, Mexico and Dammam, Saudi Arabia as well as sales offices throughout the world. VES’s proprietary design capabilities, efficient manufacturing, and global sales force uniquely position the company to provide high-quality downhole solutions delivering reliable performance and a superior customer experience. For more information, visit www.varel.com.
About Sledgehammer Oil Tools Pvt. Ltd.
Sledgehammer is a part of one of the oldest industrial groups of India, established in 1974 by a team of qualified engineers and has been involved in activities like steel castings, sheet metal, heavy engineering products etc. and they started manufacturing Cementing product in 2006. With broad accolades in building the highest standards in quality certifications, Sledgehammer has wide exposure of addressing requirements of diverse clientele in various offshore and onshore drilling locations. Manufacturing of state-of-the-art equipment has been the hallmark of Sledgehammer and to ensure sustenance of the quality as per the global standards and norms the best manufacturing processes are employed.
CONTACT: Jayme Sperring Varel Energy Services +1 281 272 6000