Flowserve Corp. said it agreed to acquire Velan for around $245 million.

Texas-based Flowserve is one of the largest suppliers of pumps, valves and other flow control products to the power, oil and gas, chemical and other sectors.

Founded in Montreal in 1950, Velan manufactures industrial valves for the nuclear, cryogenic and defense markets. Once the transaction is finalized, Velan will become part of Flowserve’s Flow Control Division (FCD) segment.

The $245 million deal includes the purchase of all issued and outstanding Velan equity for $209 million and the assumption of another $36.3 million of outstanding gross debt as of Nov. 30, 2022.

Flowserve said it also would assume Velan’s $31.4 million (C$42.2 million) of cash and cash equivalents, also as of the end of November. The transaction is expected to close by the end of the second quarter.

“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,” said Scott Rowe, Flowserve’s president and CEO.

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