Flowserve Corporation, a supplier of valves, pumps and seals, has acquired the Canadian valve manufacturer Velan. The transaction is expected to be completed by the end of the second quarter of 2023.

The price for the manufacturer of industrial valves is the equivalent of 225 million euros (245 million dollars). This includes the outstanding Velan shares for about 192 million euros (209 million dollars) and the assumption of about 33 million euros (36 million dollars) in outstanding gross debt.

Presence in nine countries

Velan’s board of directors has reviewed various strategic alternatives and unanimously voted in favour of selling the valve manufacturer. The goal is to increase Velan’s share value over the long term.

Velan was founded in Montreal in 1950 and is a manufacturer of industrial valves with a strong presence in the nuclear, cryogenic and defence industries. Around 1,650 employees work for the company in a total of nine countries. In 2022, annual sales were around €350m ($380m).

Valve manufacturer adds to Flowserve portfolio

“We are excited about the opportunity to add Velan and its talented team to the Flowserve family,” said Scott Rowe, Flowserve’s President and Chief Executive Officer.

 

“With its strong positioning in the nuclear, cryogenic, industrial and defense markets and highly complementary product portfolio, the addition of Velan furthers our Diversification, Decarbonization and Digitization (3D) strategy.”

Flowserve Corporation is a global provider of fluid power and control products and services. The company operates in more than 50 countries and manufactures engineered and industrial pumps, seals and valves, and a range of related flow management services.

Velan board recommendation

Velan’s Chairman of the Board and of its Special Committee, James Mannebach, commented:

“The transaction provides Velan shareholders an opportunity to realize an immediate and attractive premium for their shares and is recommended by the Board of Directors and Special Committee of Velan.”