addition to new Atrium takeout listSmall-Cap Takeouts
Thematic Research
January 8, 2025 5
New Ideas on Our Radar
Velan Inc. (VLN:TSX)
Velan is one of the world’s leading manufacturers of industrial valves, serving markets such as
nuclear, power, mining, oil and gas, and process industries (chemical, industrial gas, LNG). The
Company is the gold standard for nuclear plants, with over 80% of reactors worldwide using its
valves. In February 2023, VLN initiated a strategic review resulting in Flowserve (FLS:NYSE, US$8B
mkt cap) agreeing to buy the Company for $13/share. The deal was later blocked by the French
government due to risks to national security. Since then, the nuclear cycle has moved drastically in
Velan’s favour, growing revenue by 23% YoY, adjusted EBITDA 56% YoY, and its backlog by 12% YoY
in its most recent quarter. Velan trades at 5.1x LTM EBITDA and still below the takeout price from
when the business was materially weaker.
https://mcusercontent.com/4bc421505c66d079778a0d0be/files/f19320b9-9901-46a1-725d-d848d481feee/20250108_Atrium_Takeouts_Part_4.02.pdf