Flowserve Corporation has acquired Velan Inc. - a manufacturer of highly engineered industrial valves.
Founded in Montreal in 1950, Velan is a family-controlled business, with a team of 1,650 people and manufacturing facilities in nine countries.
Upon completion of the transaction, Velan will become part of Flowserve’s Flow Control Division (FCD) segment.
“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 defence markets and highly complementary product portfolio, the addition of Velan furthers our diversification, decarbonisation and digitalisation (3D) strategy. The transaction also meets our disciplined financial criteria, bringing meaningful aftermarket revenue and synergy opportunities.”
Velan’s chairman of the board and of its special committee, James Mannebach, added: “This agreement is the culmination of an extensive and robust review of strategic options to maximise shareholder value and reflects the incredible efforts of our team members to serve customers with a focus on innovation and excellence.
“The transaction provides Velan shareholders an opportunity to realise an immediate and attractive premium for their shares and is recommended by the board of directors and special committee of Velan. We see a very bright future for Velan as part of Flowserve’s leading global flow control business, and we look forward to working closely with their team to quickly integrate and realise the significant benefits of this complementary combination.”
Flowserve seals deal for valve manufacturer Velan
