Flowserve to acquire Canadian valve maker Velan in US$245mn deal

Flowserve Corp has entered into a definitive agreement to acquire Velan Inc, the Canadian manufacturer of highly engineered industrial valves, in a US$245 million (C$329 million) cash deal.

Founded in Montreal in 1950, Velan has a strong presence in the nuclear, cryogenic and defence markets. Velan, a family-controlled public company, has around 1,650 employees and manufacturing facilities in nine countries.

“We are excited about the opportunity to add Velan and its talented team to the Flowserve family,” said Scott Rowe, Flowserve’s president and CEO. “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 (3D) strategy.”

When the transaction closes, Velan will become part of Flowserve’s Flow Control Division (FCD) segment. Flowserve expects to maintain a significant presence in Québec, including Velan’s Montreal head office and the combined company will continue to maintain a significant global presence.