Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 23, 2023

Article Excerpt

FLOWSERVE CORP., $35.71, symbol FLS on New York, manufactures industrial pumps, valves, and other machinery, for several industries that use difficult-to-handle or corrosive fluids. These include power, oil and gas, chemicals, and several others. It operates facilities in more than 300 locations worldwide, selling its products in over 50 countries. In February 2023, Flowserve announced that it would acquire Velan Inc. (symbol VLN on Toronto), a Montreal-based manufacturer of industrial valves, for $245 million in cash. Founded in 1950, Velan has 12 production facilities in North America, Europe and Asia. Industries that use its valves include oil and gas, mining, water and wastewater, pulp and paper, and many more. Flowserve is paying $245 million cash for the company. Velan has annual sales of about $516 million. In the quarter ended March 31, 2023, sales rose 19.4%, to $980.3 million from $821.1 million a year earlier. Revenues were higher due to strong performances from its Original Equipment (up 24.1%) and Aftermarket (20.7%) segments. Flowserve finished…