Flowserve Corp. (FLS) agreed to buy Velan Inc. (VLN.TO), a manufacturer of highly engineered industrial valves, in an all cash transaction valued at approximately $245 million or C$329 million.
The deal price includes the purchase of all of the issued and outstanding Velan equity for about $209 million or C$281 million and the assumption of approximately $36.3 million or C$48.9 million in outstanding gross debt as of November 30, 2022.
Flowserve said it will also assume Velan's $31.4 million or C$42.2 million of cash and cash equivalents, also as of November 30, 2022.
Velan shareholders will 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.
The C$13.00 purchase price per multiple voting and subordinate voting share represents a 119% premium to Velan's 30-day volume-weighted average price per subordinate voting share on the Toronto Stock Exchange.
Following closing of the transaction, Flowserve expects to maintain a significant presence in Québec, including Velan's Montreal, Québec head office and the combined company will continue to maintain a significant global presence.
The Transaction is expected to close by the end of the second quarter of 2023.
In a separate press release, Flowserve said it expects fourth quarter 2022 earnings per share to be in the range of $0.88 to $0.92 and adjusted earnings per share of $0.59 to $0.63. Analysts polled by Thomson Reuters expect the company to report earnings of $0.44 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Flowserve anticipates fourth quarter 2022 revenues of approximately $1 billion, representing an increase of approximately 13 percent compared to the prior year. Analysts expect revenue of $992.76 million for the fourth quarter.
Bookings for the 2022 fourth quarter are expected at $1.1 billion, or an increase of 14 percent year-over-year.
The company expects 2023 revenue growth to be in the range of 9% to 11%, earnings per share of $1.40 to $1.65 and adjusted earnings per share of $1.50 to $1.75. Analysts expect annual earnings of $1.69 per share.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.