Bahrain-based investment firm Arcapita has agreed to sell Varel International Energy Services, a manufacturer of drill bits for oil and gas, and mining and industrial industries, to Sweden’s Sandvik for approximately $740m.

The exit is part of a restructuring plan that envisages the sale of all assets of Arcapita’s old portfolio, valued at $7bn, and the “management and orderly wind down” of it.

According to February 2013 filings to a US court, Arcapita’s decision to liquidate the assets and wind down operations followed the failure to arrange a new $250m capital injection by the start of November 2012 that would have provided funding for the company to carry on.