Flowserve to acquire industrial valve maker Velan for approximately $329 million

Flowserve Corp. of Dallas, a provider of flow control products and services for the global infrastructure markets, and Montreal-based Velan Inc., a manufacturer of engineered industrial valves, have entered into a definitive agreement under which Flowserve will acquire Velan in an all cash transaction valued at approximately $329 million.

The Transaction is expected to close by the end of the second quarter of 2023.

Founded in Montreal in 1950, Velan is a manufacturer of industrial valves with a strong presence in the nuclear, cryogenic and defense markets. Velan is a family-controlled business, with a team of 1,650 people and manufacturing facilities in nine countries. Through its fiscal third quarter ended November 30, 2022, Velan reported trailing twelve-month revenues of approximately $380 million with reported EBITDA of approximately $21 million. Upon completion of the transaction, Velan will become part of Flowserve’s Flow Control Division (FCD) segment.

Velan is said to add significant value within Flowserve’s existing valves portfolio and further builds upon Flowserve’s existing assets through the addition of Velan’s premier brands, strong heritage, and technical expertise in attractive and diverse end markets.

The additional scale, footprint consolidation and procurement opportunities provided by the combination is expected to result in substantial synergies. In addition, the transaction is expected to increase Flowserve’s aftermarket potential, based on the large installed base of Velan products and the expansive network of Flowserve’s Quick Response Centers (QRCs.)