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Velan Inc T.VLN

Alternate Symbol(s):  VLNSF

Velan Inc. is a Canada-based manufacturers of industrial valves. The Company designs, manufactures and markets a range of industrial valves for use in industry applications, including power generation, oil and gas, refining and petrochemicals, chemicals, liquid natural gas and cryogenics, pulp and paper, geothermal processes and shipbuilding. Its products include Quarter-turn valves, Gate, globe, and check valves, Cryogenic valves, HF Acid valves, Steam traps, Bellows seal valves and Velan ABV Valves. Its services include research and development, maintenance manuals (IOMs), spare parts and service locations. The North American operations comprising two manufacturing plants in Canada, as well as one manufacturing plant and one distribution facility in the United States. Its overseas operations include manufacturing plants in France, Italy, Portugal, Korea, Taiwan, India, and China. The Company’s operations also include a sales operation in Germany.


TSX:VLN - Post by User

Comment by Deepvalue1981on Jan 12, 2022 8:25pm
160 Views
Post# 34310917

RE:RE:RE:RE:RE:Strong Third Quarter 2021/22 Financial Results

RE:RE:RE:RE:RE:Strong Third Quarter 2021/22 Financial Results

That's a fair point and I don't have any special insight either. But I do think we have an idea of what the family thinks it's worth from Takascy. Mid 20's is what's been put out there. That would be 10x current run rate ebitda which does seem expensive for a cyclical business like this. But synergies would bring that price down considerably for an acquirer and there would be multiple bidders in a non forced sale. Plus this is one of the best brands out there in terms of industrial valve producers that's still independent. So I think that number isn't crazy  

I agree that they don't generate the type of roic to be considered a good business, and they clearly have an over capitalized balance sheet as you state. This really is run like a private business and while they have made considerable improvements from and efficiency standpoint imo they probably have a scale problem and really need to come to grips with that and sell to the highest bidder. 

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