Accelerates Flowserve’s 3D Strategy and provides meaningful aftermarket revenues
- Velan brings a highly complementary valve portfolio to Flowserve’s FCD segment
- Transaction expected to be accretive to Flowserve’s Adjusted EPS in first full year after close
- Transaction provides compelling value to Velan shareholders following an extensive and robust review of strategic options
- Velan shareholders to receive EUR 9,11 in cash per multiple voting and subordinate voting share, representing a significant premium to Velan’s 30-day volume weighted price
Flowserve Corporation, a leading provider of flow control products and services for the global infrastructure markets, and Velan Inc., a leading manufacturer of highly engineered industrial valves, have announced that they have entered into a definitive agreement under which Flowserve will acquire Velan in an all cash transaction valued at approximately EUR 229 million, including the purchase of all of the issued and outstanding Velan equity for approximately EUR 196 million and the assumption of approximately EUR 34 million in outstanding gross debt as of November 30, 2022. Flowserve will also assume Velan’s EUR 29.4 million of cash and cash equivalents, also as of November 30, 2022. The Transaction is expected to close by the end of the second quarter of 2023.
