Acquisitions, Mergers & Partnerships

Victaulic Acquires Horizon Metals Inc.

On March 30, 2023, Victaulic, a manufacturer of mechanical pipe joining, fire protection and flow control solutions, acquired Horizon Metals Inc.. The acquisition supports the company’s growth in the infrastructure and waterworks market by increasing capacity for large-diameter piping solutions and is aligned with the strategy to manufacture these products in the United States.

Victaulic continues to demonstrate its commitment to meeting the growing needs of its North American customer base by adding foundry and manufacturing capacity. With this acquisition, Victaulic has added over 1.4 million square feet of foundry and manufacturing capacity in North America since 2011.

Victaulic was founded in 1919 and offers innovative solutions and design services to increase construction productivity and reduce risk, ensuring projects are completed safely, on time and within budget. The company has more than 4,500 employees across its 40 international facilities. Learn more at www.victaulic.com.

Horizon Metals, Inc. is a family-owned and operated iron and steel foundry located in Nephi, Utah.

Flowserve and Hydrogen Optimized Announce Green Hydrogen Partnership

Flowserve Corporation, a leading provider of flow control products and services for the global infrastructure markets, and Hydrogen Optimized, a developer and manufacturer of large-scale green hydrogen production systems, announced that the companies entered into a memorandum of understanding (MOU) to advance hydrogen production with innovative technologies and applications.

Hydrogen Optimized’s patented RuggedCell water electrolyzers are designed to achieve the lowest levelized cost of clean hydrogen at large scale. They convert renewable energy such as solar and wind power into green hydrogen, utilizing a high-power architecture that enables 50 MW+ single modules to serve the clean energy requirements of major industrial applications such as steel making, ammonia production and e-fuels.

Under the MOU, Flowserve will provide its SIHI Liquid Ring Compressor to Hydrogen Optimized for use with a RuggedCell system at its High-Power Demonstration Facility in Ontario. In addition, Flowserve will provide engineering support to assist in flow equipment selection, specification and standardization to help optimize the efficiency of the back end of its hydrogen production. Through this collaboration, Hydrogen Optimized seeks to accelerate the commercialization of its RuggedCell system. Additionally, it will enable Flowserve to review critical performance data on its products which is expected to result in a leading technology to meet the needs of future decarbonization efforts.

Learn more about Flowserve’s 3D strategy and unique approach to reducing carbon emissions and helping customers reach their goals.

To learn more about Hydrogen Optimized and its innovative technologies, you can visit their site.

Majority Interest in FloWorks Sold to Wynnchurch

Clearlake Capital Group, L.P. announced it has completed the sale of a majority interest in FloWorks International, LLC, to Wynnchurch Capital, L.P. Clearlake will retain a minority stake in the business going forward. Financial terms of the transaction were not disclosed.

FloWorks is a specialty flow control distribution platform providing solutions focused on non-discretionary maintenance, repair, and replacement activities. Under Clearlake’s ownership, FloWorks has completed seven strategic acquisitions, further expanding its flow control product portfolio. The new investment and recapitalization by Wynnchurch will enable the company to continue executing on its organic and acquisition growth plans.

More information is available at www.gofloworks.com.
 

Flowserve to Acquire Velan in All Cash Offer

Flowserve Corporation, a provider of flow control products and services for the global infrastructure markets, and Velan Inc., a manufacturer of highly engineered industrial valves, announced that they have entered into a definitive agreement under which Flowserve will acquire Velan in an all-cash transaction valued at approximately $245 million (Canadian $329 million), including the purchase of all of the issued and outstanding Velan equity, the assumption of outstanding gross debt as of November 30, 2022. Flowserve will also assume Velan’s $31.4 million (Canadian $42.2 million) of cash and cash equivalents, also as of November 30, 2022. The transaction is expected to close by the end of the second quarter of 2023.

Founded in Montreal in 1950, Velan is a leading manufacturer of industrial valves with a strong presence in the nuclear, cryogenic and defense markets. Upon completion of the transaction, Velan will become part of Flowserve’s Flow Control Division (FCD) segment.

Velan adds significant value to Flowserve’s existing valves portfolio and further builds upon Flowserve’s existing assets through the addition of Velan’s premier brands, strong heritage and technical expertise in attractive and diverse end markets. The additional scale, footprint consolidation and procurement opportunities provided by the combination are expected to result in substantial synergies. Further, the transaction is expected to increase Flowserve’s aftermarket potential, based on the large installed base of Velan products and the expansive network of Flowserve’s Quick Response Centers (QRCs.)

Following closing of the transaction, Flowserve expects to maintain a significant presence in Québec, including Velan’s Montreal, Québec head office and the combined company will continue to maintain a significant global presence.

The transaction follows the unanimous recommendation of Velan’s Special Committee of the Board of Directors, which reviewed various strategic alternatives available to Velan in order to enhance shareholder value (including the status quo and a variety of other stand-alone structures).

Management Buyout of Cowan Dynamics Complete

Cowan Dynamics CEO and president, Rene Wenker, announced that the company has concluded a management buyout. Ana Munteanu and Aymen Ghorbal acquired the company in a phased-in transaction. The transition completes a process that took place over a number of years. Munteanu is now executive vice president of corporate finance, and Ghorbal is executive vice president of global business development. Wenker will stay on as president and CEO.

Munteanu joined the company in 2016, after senior financial experience. Since joining Cowan she has been actively involved in all aspects of operations, focusing on improving efficiencies.

Ghorbal joined Cowan in 2014, in the automation and testing division. He has built a reputation for his deep technical knowledge and hands-on problem-solving approach while always supporting clients. He was promoted to director of engineering and director of sales for major accounts prior to his most recent role.

Cowan Dynamics was founded in 1957 in Montreal and acquired by Rene Wenker in 1997.

Awards, Honors & Anniversaries

Gilmore Celebrates 60-Year Anniversary

VMA member company 
Gilmore is celebrating 60 years of the design, manufacture and service delivery of critical flow control solutions for the toughest environments.
 

Darren Johnson, VP Ops, David Nemetz, CEO, and Ryan Bludau CTO of Gilmore.
Photo Credit: Gilmore

Already providing reliable flow control solutions to the energy markets, Gilmore continues to collaborate, research and innovate to adapt and accommodate new challenges. Its latest Agiliti product line consists of flow control products and safety systems that expand Gilmore’s technology for the unconventional market. These products improve efficiencies, reduce operational costs across the Frac spread, dramatically extend service life and boost Gilmore’s customer profitability.

Headquartered in Houston, Texas, Gilmore has established a distribution partner network that supports global markets. 

Baker Hughes Foundation Contributes To Charities Nominated by Employees

The Baker Hughes Foundation announced a total of $270,000 in grants to nonprofit organizations (NPO) that promote diversity, equity and inclusion (DEI). The recipient NPOs were nominated by Baker Hughes global employee resource groups (ERG), who have joined together based on shared interests, characteristics or life experiences.

ERGs provide a sense of connection with members being active volunteers in their communities. These groups have built strong partnerships with many nonprofits across the globe to drive social change for some of the world’s toughest challenges including education, opportunity and equality.

Some of the charities that received donations were: MySkills Foundation; Junior Achievement of Southeast Texas; Easter Seals Greater Houston; Un Techo Para Mi País; The Trevor Project; Folds of Honor Foundation; and GiGi’s Playhouse.

“Giving our employees a voice is critical and drives change by elevating the conversation, creating awareness, and engaging with the communities where we conduct business,” says Baker Hughes’ chief culture and diversity equity and inclusion officer, Nicole Durham. “We strive to be an inclusive workplace where employees know their voices are heard.”

This is the second consecutive year that the Baker Hughes Foundation has issued grants to charities nominated by ERGs. These grants support the Foundation’s mission to promote education, opportunity, diversity, equity and inclusion. This donation also supports Baker Hughes’ commitment to advancing the United Nations’ Sustainable Development Goals (SDGs).

Valmet and Metsä Group awarded Quality Innovation Award

The Quality Innovation Award competition is an international, prestigious innovation competition, which recognizes the best innovations of the year. The demo plant previously won the Finnish Quality Innovation Award competition organized by Excellent Finland, after which the innovation was able to participate in the international competition.

The joint development project competed in the category of potential innovations. The evaluation criteria were novelty value, usability, learning, customer orientation and effectiveness. The official award ceremony took place in Kazakhstan on February 24, 2023.

The demo plant was inaugurated in August 2022 with the goal to develop a competitive and recyclable fiber-based package to replace plastics. The products, called Muoto, are manufactured ready-to-use for different end uses. Valmet 3D Fiber technology combines the production process of both the packaging material and the packaging into the same production line resource-efficiently. After the currently ongoing demo phase is completed, market testing of the products with pilot customers will follow.

"This award is a recognition for Valmet’s forward-looking innovation mindset as well as for the hard work and dedication of the development team of Valmet, Metsä Group and our co-operation partners. The award serves as a testament to our commitment to pushing the boundaries of what is possible and driving technology forward in our field," says Sampo Immonen, R&D Director, Board and Paper Mills, Valmet.

People in the News

Kitz Corporation of America Announces New President

During its fourth quarter board of directors meeting, KITZ Corporation of America unanimously approved the appointment of Mike Chamberlain to president and board member effective April 1, 2023. Chamberlain joined KCA in 2020 following a 31-year career at MRC Global, leaving as vice president of business development. As managing director of business development at KCA, Chamberlain was instrumental in expanding distributor and end-user relationships.

Chamberlain will replace Jim Walther, a 36-year KCA employee who spent the past 17 years as its president. Walther will assume the role of chairman of the company. Walther states: “It has been a pleasure and an honor to lead KCA. I am forever grateful to our outstanding employees and distributor partners/end users who have supported KCA and our products. Along with our board, I have every confidence Mike is the right person at the right time to lead our company into the future. I look forward to assisting Mike and his team while continuing to represent KCA in the market as chairman.”

KCA also promoted Erik Andrews from general manager of its commercial division to vice president and board member, beginning April 1. Andrews began his KITZ career in 2008.

Founded in 1985 and headquartered in Stafford, Texas, KCA is responsible for the sales and marketing of all KITZ Group products in the Americas and Canada (industrial valves only).

Conval Appoints Scott Allard as President

New Conval president, Scott Allard
Photo Credit: Conval

Chairman and owner Frank Siver announced the hiring of Scott Allard as president of Conval, Inc. Allard joined Conval with a wide range of experience, garnered from a number of different valve manufacturers in managerial roles ranging from engineering to general management to product/project management and sales. He replaces Don Curtin, who retired after 25 years of service.

His professional focus has been in engineered flow control products for specialized end-user markets such as the U.S. Department of Defense/U.S. Navy, power, oil and gas. His previous experience includes Portland Valve, Crosby Valve, Hunt Valve, Consolidated Valve and General Dynamics Electric Boat.

Victaulic Promotes Gary Moore to Executive VP and CRO

Gary Moore, named EVP and CRO of Victaulic.
Photo Credit: Victaulic

Victaulic announced the promotion of Gary Moore to executive vice president and chief revenue officer. Moore began his Victaulic career 35 years ago in sales for Canada and progressed to the role of president of Victaulic Company of Canada, Limited. Later he joined the executive team at Victaulic’s U.S. corporate headquarters and served as the executive vice president responsible for building and driving the global sales team.

Throughout his career, Moore has demonstrated his cross-functional prowess through focused sales strategies, product development and innovation, and targeted marketing and customer-facing services such as virtual design and construction and piping system design. As CRO, he will be responsible for uniting sales with product development and innovation as a center of excellence to drive revenue growth.