Velan has acquired a 70% stake in ABV Energy S.p.A., an Italian manufacturer of engineered valves, actuators and control systems for the energy market.
MONTREAL: Velan Inc. has acquired a 70% stake in ABV Energy S.p.A., an Italian manufacturer of engineered valves, actuators and control systems for the energy market.
The Montreal-based manufacturer of industrial valves with plants in eight countries, said the “strategic acquisition” broadens the scope of product lines to the energy markets.
No financial details were provided other than the purchase has been funded out of Velan’s cash resources.
The Marianetti family will retain 30% ownership and Luca Marianetti will continue to be the president and CEO of the company, which will be named Velan ABV S.p.A.
ABV’s product line, which manufactures valves to API6D and 6A standards, includes pipeline ball valves, emergency shut-down valves, high integrity pressure protection systems (HIPPS), subsea ball valves, control ball valves, diverter valves, modular double block and bleed valves, slab gate valves, choke valves, and nozzle check valves.
The company also manufactures its own line of pneumatic and hydraulic actuators, including gas-over-oil actuators.
“We can help ABV realize the global market potential for these specialized valves and actuators. I am looking forward to working with Luca Marianetti and his team to grow the business,” said Tom Velan, president and CE of Velan.
ABV is expanding its manufacturing facilities by an additional 5,000 square metres. The expansion includes an investment in new machinery and equipment to improve the layout and production flow of the assembly and test facility.
For the fiscal year ending Dec. 31, ABV had sales of US$52.3 million and employed 118 people.
Velan, which employs more than 1,700 people, had sales of $466 million in its last reported fiscal year. The company and has manufacturing plants in eight countries.