Flowserve Announces French Regulatory Rejection of Velan Transaction
05 Outubro 2023 - 5:02PM
Business Wire
Flowserve Corporation (NYSE: FLS), a leading provider of flow
control products and services for the global infrastructure
markets, announced today that the French Ministry of Economy, as
part of its Foreign Direct Investment review process, has rejected
Flowserve’s acquisition of Velan Inc. (“Velan”) (TSX: VLN).
“We are obviously disappointed with the French government’s
decision,” said Scott Rowe, Flowserve President and Chief Executive
Officer. “We do not believe the decision aligns with the French
government’s stated goal of encouraging foreign investment into
France’s economy. Throughout this process, Flowserve worked
diligently and proactively to address all of the concerns that were
raised by the French government. We were optimistic about the
acquisition of Velan and the numerous benefits this would provide
for both companies and their stakeholders. We sincerely appreciate
the efforts of our Flowserve associates and Velan team members who
worked so tirelessly on the transaction. We remain excited about
the future of Flowserve and will continue to aggressively pursue
our 3D strategy.”
Flowserve and Velan previously extended the outside date (the
“Outside Date”) of the arrangement agreement made as of February 9,
2023, among Velan, 14714750 Canada Inc. and Flowserve US Inc., as
amended (the “Arrangement Agreement”) to October 7, 2023. With the
latest development regarding the French regulatory denial,
Flowserve does not intend to make any further extensions to the
Outside Date and intends to terminate the Arrangement Agreement
following the occurrence of the Outside Date. According to the
terms of the Arrangement Agreement, no termination fee will be
payable by either party.
About Flowserve: Flowserve Corp. is one of the world’s
leading providers of fluid motion and control products and
services. Operating in more than 50 countries, the company produces
engineered and industrial pumps, seals and valves as well as a
range of related flow management services. More information about
Flowserve can be obtained by visiting the company’s website at
www.flowserve.com.
Safe Harbor Statement: This news release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, as
amended. Words or phrases such as, "may," "should," "expects,"
"could," "intends," "plans," "anticipates," "estimates,"
"believes," "forecasts," "predicts" or other similar expressions
are intended to identify forward-looking statements, which include,
without limitation, earnings forecasts, statements relating to our
business strategy and statements of expectations, beliefs, future
plans and strategies and anticipated developments concerning our
industry, business, operations and financial performance and
condition
The forward-looking statements included in this news release are
based on our current expectations, projections, estimates and
assumptions. These statements are only predictions, not guarantees.
Such forward-looking statements are subject to numerous risks and
uncertainties that are difficult to predict. These risks and
uncertainties may cause actual results to differ materially from
what is forecast in such forward-looking statements, and include,
without limitation, the following: the impact of the global
outbreak of COVID-19 on our business and operations; global supply
chain disruptions and the current inflationary environment could
adversely affect the efficiency of our manufacturing and increase
the cost of providing our products to customers; a portion of our
bookings may not lead to completed sales, and our ability to
convert bookings into revenues at acceptable profit margins;
changes in global economic conditions and the potential for
unexpected cancellations or delays of customer orders in our
reported backlog; our dependence on our customers’ ability to make
required capital investment and maintenance expenditures; if we are
not able to successfully execute and realize the expected financial
benefits from any restructuring and realignment initiatives, our
business could be adversely affected; the substantial dependence of
our sales on the success of the oil and gas, chemical, power
generation and water management industries; the adverse impact of
volatile raw materials prices on our products and operating
margins; economic, political and other risks associated with our
international operations, including military actions, trade
embargoes, epidemics or pandemics or changes to tariffs or trade
agreements that could affect customer markets, particularly North
African, Latin American, Asian and Middle Eastern markets and
global oil and gas producers, and non-compliance with U.S.
export/re-export control, foreign corrupt practice laws, economic
sanctions and import laws and regulations; increased aging and
slower collection of receivables, particularly in Latin America and
other emerging markets; our exposure to fluctuations in foreign
currency exchange rates, including in hyperinflationary countries
such as Venezuela and Argentina; potential adverse consequences
resulting from litigation to which we are a party, such as
litigation involving asbestos-containing material claims;
expectations regarding acquisitions and the integration of acquired
businesses; the potential adverse impact of an impairment in the
carrying value of goodwill or other intangible assets; our
dependence upon third-party suppliers whose failure to perform
timely could adversely affect our business operations; the highly
competitive nature of the markets in which we operate;
environmental compliance costs and liabilities; potential work
stoppages and other labor matters; access to public and private
sources of debt financing; our inability to protect our
intellectual property in the U.S., as well as in foreign countries;
obligations under our defined benefit pension plans; our internal
control over financial reporting may not prevent or detect
misstatements because of its inherent limitations, including the
possibility of human error, the circumvention or overriding of
controls, or fraud; the recording of increased deferred tax asset
valuation allowances in the future or the impact of tax law changes
on such deferred tax assets could affect our operating results; our
information technology infrastructure could be subject to service
interruptions, data corruption, cyber-based attacks or network
security breaches, which could disrupt our business operations and
result in the loss of critical and confidential information;
ineffective internal controls could impact the accuracy and timely
reporting of our business and financial results; and other factors
described from time to time in our filings with the Securities and
Exchange Commission.
All forward-looking statements included in this news release are
based on information available to us on the date hereof, and we
assume no obligation to update any forward-looking statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20231005462898/en/
Flowserve Contacts Jay Roueche, Vice President, Investor
Relations & Treasurer (972) 443-6560 Mike Mullin, Director,
Investor Relations (214) 697-8568 Wes Warnock, Vice President,
Corporate Communications (972) 443-6900
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