Flowserve Corporation, a leading provider of flow control products and services for the global infrastructure markets, has closed its all-cash acquisition of Trillium Flow Technologies' Valves Division for $490 million plus working capital adjustments. TVD is a leading provider of highly engineered mission-critical valves and other flow control equipment used in nuclear and traditional power generation, industrial, and critical infrastructure applications.
TVD's comprehensive portfolio of brands serves a global customer base across attractive and growing end markets with a nearly 200-year legacy of engineering excellence and reliable performance. The acquisition will expand Flowserve's reach in both conventional and emerging end markets by integrating TVD's highly specialized valve and actuation product portfolio, differentiated power and nuclear technology, and scalable service offerings.
"We are pleased to welcome the TVD team to Flowserve," said Scott Rowe, Flowserve President and Chief Executive Officer. "We have positioned Flowserve to identify and win in growth sectors, such as nuclear, that drive sustainable and profitable long-term growth. TVD strengthens our position in the accelerating power and nuclear markets and enables us to build on the deep customer relationships we have already developed in this space. Our disciplined approach to capital allocation led to this transaction, which we expect to enhance growth and margin expansion."
Flowserve will integrate TVD using the Flowserve Business System and apply its rigorous 80/20 operating principles, which are anticipated to enhance operational performance, expand margins, and better serve customers with a powerful portfolio of products, services, and aftermarket capabilities. The acquired business is expected to have adjusted EBITDA margins in the high teens, with annualized revenue of approximately $200 million after contemplating reductions from applying 80/20 principles.
Flowserve looks forward to a smooth transition and strong partnership with all TVD customers, suppliers, and distributors.