DUBAI Bahrain-based investment firm Arcapita ARCAB.UL said on Monday it agreed to sell U.S.-based Varel International VRLIT.UL to Sweden's Sandvik AB (SAND.ST) for a total transaction value of $740 million.
Varel, headquartered in Texas, is a manufacturer of drill bits for the oil and gas, and mining and industrial industries.
Arcapita, which originally bought the company in 2007, said the Varel sale was still subject to regulatory approvals, and that it hoped to conclude the deal by the end of the first half of 2014.
Sandvik said on January 7 that it was buying Varel for $740 million and that the transaction would be slightly accretive to earnings per share in the first year.
(Reporting by David French; Editing by Dinesh Nair)