Varel Energy Solutions (VES) on July 5 acquired oilfield casing, cementing and completion product supplier Sledgehammer Oil Tools, according to a company press release.
The transaction will combine VES' global manufacturing infrastructure with Sledgehammer's supply chain efficiency, boosting productivity for the company and allowing it to deliver improved value and economics to customers.
“We exist to become the industry’s maker of consumable downhole products across the traditional oil and gas and renewable energy sector," VES president and CEO Derek Nixon said in the release. "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.”
Through the acquisition, VES will now benefit from Sledgehammer's northern India-based engineering, manufacturing and testing capabilities, solidifying the company's existing portfolio of low-cost casing and cementing products, fueled by Downhole Products.
VES now leverages approximately 1 million sq ft of manufacturing footprint that will support customers across the Middle Eastern, Asian and European markets, as well as those in the western hemisphere.
“For this area of business, we are committed to being the economic leader in downhole cementing equipment to the industry, period,” VES executive vice president of eastern hemisphere operations said, adding that the acquisition "represents another hugely important step toward this commitment.”
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