Velan Inc., a global manufacturer of industrial valves, has unveiled significant strategic initiatives aimed at reducing operational risks and bolstering its financial health.
The company announced an agreement to transfer its asbestos-related liabilities to an affiliate of Global Risk Capital for $143 million. This move eliminates long-standing liabilities, effectively removing them from Velan’s balance sheet and providing financial stability for future operations.
Additionally, Velan is in exclusive discussions to sell its French subsidiaries to Framatome, a transaction valued at $175.2 million (€170 million). The deal also includes an intercompany loan transfer, increasing the total value to $198.4 million (€192.5 million). This sale aligns with local interests in France and is seen as supportive of broader industry goals in the region.
Velan executives emphasized that these measures are part of a broader strategy to streamline operations and focus on key growth areas, particularly clean energy. James A. Mannebach, Velan’s Chairman and CEO, noted that the initiatives will reinforce the company’s position in delivering high-quality flow control solutions for demanding industrial applications.
These actions also position Velan to capitalize on opportunities in the growing nuclear and clean energy sectors, which are experiencing increased global demand. The company aims to achieve sustained growth by aligning its operations with evolving market needs.
With these changes, Velan is set to move forward with a clearer focus and reduced risk, ensuring it remains a reliable player in the industrial valve sector.