Arcapita Buying Varel

Arcapita has agreed to acquire Varel Holdings Inc., a maker of drill bits for the oil & gas and mining industries, from KRG Capital Partners. The news was first reported by LBO Wire, which values the transaction at $369 million. KRG Capital bought Varel from 3i Group and UTIMCO in June 2005. It has since made several add-on acquisitions.