FLS - Flowserve to acquire Velan in $245M deal; sees Q4 total revenues hitting $1B

Flowserve ( NYSE: FLS ) said Friday it agreed to acquire Velan ( OTCPK:VLNSF ), a Canadian manufacturer of industrial valves, in a deal valued at $245M, including the purchase of all issued and outstanding Velan equity for $209M and the assumption of $36.3M in outstanding gross debt as of November 30.

Velan Holding Co. Ltd., Velan's ( OTCPK:VLNSF ) controlling shareholder and the sole holder of multiple voting shares, has agreed to vote all of its shares in favor of the takeover.

Flowserve ( FLS ) expects to realize ~$20M of run-rate cost synergies within two years after the deal closes, and it expects the deal to be accretive to adjusted EPS in the first full year following close.

Upon completion of the deal, Velan ( OTCPK:VLNSF ) will become part of Flowserve's ( FLS ) Flow Control Division segment.

Flowserve ( FLS ) also released preliminary Q4 results , including adjusted earnings of $0.59-$0.63/share on ~$1B in revenues, which would represent a 13% Y/Y increase.

Q4 bookings are expected to toal $1.1B, up 14% Y/Y and bringing full-year bookings to $4.4B.

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