Teledyne Technologies said Feb. 27 that it has purchased a Canadian firm that makes electronics products for the oil and gas industry.
Teledyne, a Thousand Oaks-based conglomerate of defense and industrial brands, has been rebalancing its portfolio away from defense companies and toward commercial and industrial products as the U.S. cuts defense spending as it winds down two major wars. With VariSystems, a Calgary, Alberta-based firm with about $28 million a year in sales, Teledyne is deepening that shift.
VariSystems makes interconnects for harsh environments – in essence, the rugged electrical connectors used to hook up sensors and cameras when oil and gas companies are drilling for potential wells. Teledyne already produces products for offshore exploration. VariSystems will bring the Teledyne brand on shore.
“VariSystems will provide greater access to land-based energy markets, specifically hydraulic fracturing and oil sands applications, where VariSystems’ products provide the highest degree of reliability in very demanding environments,” Robert Mehrabian, Teledyne’s CEO and the former dean of UC Santa Barbara’s engineering college, said in a news release.
The financial terms of the transaction weren’t disclosed. After the closing, the acquired business will operate under the name Teledyne VariSystems, Teledyne said in a release.