Flowserve Corp. (Flowserve), a provider of flow control products and services for the global infrastructure market, will acquire Velan Inc. (Velan), a manufacturer of highly engineered industrial valves. The US$245 million transaction includes Velan’s manufacturing facilities in nine countries.
Velan adds significant value within Flowserve’s existing valves portfolio and further builds upon Flowserve’s existing assets through the addition of Velan’s brands, heritage, and technical expertise in diverse end markets. The additional scale, footprint consolidation, and procurement opportunities provided by the combination is expected to result in substantial synergies. Further, 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.
“We are excited about the opportunity to add Velan and its talented team to the Flowserve family,” said Scott Rowe, president and chief executive officer of Flowserve. “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 strategy. The transaction also meets our disciplined financial criteria, bringing meaningful aftermarket revenue and synergy opportunities.”