Sandvik acquires Varel International Energy Services Inc.

Sandvik has reached an agreement to acquire Varel International Energy Services
Inc. (Varel). The acquisition price amounts to approximately 740 million USD.
The closing of the acquisition is subject to standard regulatory approvals and
certain environmental due dilligence.

Varel is a global supplier of drilling solutions focusing on drill bits,
downhole products for well construction and well completion. The key customer
segment is in the Oil and Gas sector, with some exposure to the mining and
construction industries. The manufacturing sites are located in Houston (USA),
Matamoros (Mexico), Aberdeen (Scotland), Tarbes (France), and Kurgan (Russia).
The head office is based in Carrollton,Texas, USA.

Revenues in 2013 were approximately 340 million USD and number of employees
about 1,300. The acquisition is expected to be slightly accretive to earnings
per share already in the first year. Varel will form a new product area within
the business area Sandvik Venture.

"The acquisition forms a platform to enable Sandvik to enter into drilling
solutions in the oil and gas sector. The combination of Varel’s solid market
position and strong customer offering, and Sandvik’s broader drilling solutions
capabilities as well as the extensive knowledge in highly relevant materials and
cutting technology will support Varel's continued growth. I am very impressed by
the Varel team and I am excited about our joint opportunities going forward",
says Tomas Nordahl, President of Sandvik Venture.

“The acquisition continues to position Sandvik in attractive growth segments
where we will deliver solutions that increase customers’ productivity. This is
in line with Sandviks growth ambition and a way to leverage our technical know
how and Varel’s market position”, says Olof Faxander, Sandvik’s President and
CEO.


Stockholm, 7 January 2014


Sandvik AB

Sandvik AB discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 16.00 CET on 7 January, 2014.

For further information contact: Magnus Larsson, Vice President Investor
Relations, Sandvik AB, tel +46 8 456 12 40 or Conny Rask, Press and PR Manager,
Sandvik AB, tel +46 26 26 51 49

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Sandvik Group
Sandvik is a global industrial group with advanced products and world-leading
positions in selected areas – tools for metal cutting, equipment and tools for
the mining and construction industries, stainless materials, special alloys,
metallic and ceramic resistance materials as well as process systems. In 2012
the Group had about 49,000 employees and representation in 130 countries, with
annual sales of about 99,000 million SEK.
Sandvik Venture
Sandvik Venture is a business area within the Sandvik Group aiming to create
value through profitable growth of small to mid-sized businesses of particular
interest for Sandvik. The product areas comprise Wolfram, Sandvik Process
Systems and Sandvik Hyperion. In 2012 sales amounted to about 6,000 million SEK,
with approximately 2,700 employees.