VIES announces multimillion-dollar investment from Blue Water Energy
Varel International Energy Services (VIES) has announced a multimillion-dollar investment from Blue Water Energy.
VIES is the parent company of Varel, headquartered in Houston, Texas, with premises also in Mexico, Scotland, France, Russia and Saudi Arabia.
Varel will use the investment from Blue Water Energy to drive growth in the medium term.
A revised strategy will see Varel explore potential international growth prospects, including M&A opportunities, in the completions products market, as the number of wells and the length of projects continues to grow worldwide. VIES will also look to consolidate the highly fragmented completions market, particularly in the US, India and the Middle East.
Derek Nixon becomes the new CEO and President of VIES and will oversee the company’s new direction. Mr Nixon has been with VIES for 12 years and is currently Vice President of DHP. Mr Nixon joined Varel as a field salesman in 2006, later becoming Regional Manager before moving across to DHP in 2014. He became Vice President of DHP in 2016.
The deal also sees Jim Nixon, who previously spent 16 years as CEO of Varel before leaving in 2014, return as Non-Executive Chairman.
“Partnering with Blue Water Energy gives us the impetus to really drive growth across the company,” Derek Nixon said. “Our aim is to restore Varel to the top of the industry.”
“The new leadership team and I are extremely motivated to take the company in a new direction. The business will be built around customer’s needs, quality products and exceptional performance,” Derek Nixon added. “There will inevitably be a shift in strategy as we look to take full advantage of international growth opportunities, especially in India and the Middle East. We have a very open attitude to the future of the company, including being acquisitive in those markets.”
Discussing his succeeding Guillermo Aponte, Derek Nixon said: “It is a great honor to follow Guillermo and become the new President and CEO for Varel, and I wish him all the best for the future. I am excited about this opportunity and to bring back the entrepreneurial spirit and grow the business. We are going to go back to basics – putting the customer first and delivering quality products.”
Blue Water Energy, which has over $2.5 billion under management across two funds, sees its portfolio grow to 23 companies as a result of the acquisition.