FOR IMMEDIATE RELEASE
DALLAS, and MONTREAL, February 10, 2023
Flowserve to Acquire Velan in an All-cash Transaction Valued at Approximately $245 million (C$329 million)
- 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 C$13.00 in cash per multiple voting and subordinate voting share, representing a significant premium to Velan’s 30-day volume weighted price
Flowserve Corporation (“Flowserve”) (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, and Velan Inc. (“Velan”) (TSX: VLN), a leading manufacturer of highly engineered industrial valves, today announced that they have entered into a definitive agreement (the “Arrangement Agreement”) under which Flowserve will acquire Velan in an all cash transaction (the “Transaction”) valued at approximately $245 million (C$329 million), including the purchase of all of the issued and outstanding Velan equity for approximately $209 million (C$281 million) and the assumption of approximately $36.3 million (C$48.9 million) in outstanding gross debt as of November 30, 2022. Flowserve will also assume Velan’s $31.4 million (C$42.2 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.
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