Montreal-based industrial valve manufacturer Velan has been sold to Birch Hill in a transaction valued at approximately $209.3 million.

The deal marks a change in control and a broader leadership transition at the company as members of founding Velan family depart.

Birch Hill acquired Velan’s controlling interest from Velan Holding and affiliated entities at a price of $13.10 per share. The transaction included 13.3 million multiple voting shares and 2.3 million subordinate voting shares, representing about 72.1% of Velan’s outstanding shares and 91.9% of its voting rights, said Velan.

The sale follows a co-operation agreement announced in January and received the required regulatory approvals.

As Birch Hill chief operating officer and partner Pierre Schuurmans said when the transaction was announced\

“We have immense respect for the 75-year legacy the Velan family has built, rooted in decades of engineering excellence and manufacturing expertise across critical global industries,” said Pierre Schuurmans, Birch Hill’s chief operating officer. “We are proud to invest in a company with such strong Quebec heritage and global presence. We look forward to building on this foundation and supporting the Company’s continued growth and innovation.”

The closing of the transaction prompted changes to Velan’s board and executive team. Ivan Velan, Peter Velan, Rob Velan and Tom Velan resigned from the board.

Patrick Duncan, a partner at Birch Hill, has been appointed chair of the board. Joshua Lundy, Jim Mannebach and Shauna Gamble joined the board as Birch Hill nominees, while Daniel Desjardins, Edward Kernaghan and Suzanne Blanchet remain independent directors. Desjardins has been named lead director.

Mannebach retired as CEO and stepped down as board chair but will remain a director and assist with the transition.

“On behalf of the board, I want to thank Jim for his steady leadership during an important transition period for Velan,” said Desjardins. “After first serving on an interim basis, Jim stepped into the CEO role and helped guide the company through this phase with focus and stability. We are grateful for his contributions and pleased that he will continue to support Velan as a member of the board.”

Rishi Sharma, previously CFO, has been appointed president and CEO. Imran Gibbons, formerly vice-president of global financial planning and analysis, has been named chief financial officer.

“I would like to thank Jim, and the Velan family for the support, guidance, and opportunity over the past four years,” said Sharma. “I am also humbled and sincerely thankful to the Birch Hill team and the Board for their trust in giving me this exciting new opportunity,” said Sharma.

“With the strategic transactions closed in the last two years, Velan enters its next phase from a position of strength. We have a highly skilled team, deep technical expertise, and a strong commitment to our customers around the world. With the support of Birch Hill’s long-term investment plan, we are well-positioned to accelerate the execution of our strategy, invest in the capabilities that will strengthen our competitiveness and continue building a stronger business for our employees, customers, and shareholders.”

Velan also said it plans to secure a new US$80-million revolving credit facility from a leading Canadian financial institution. The five-year facility, expected to run through June 2031, will be used to retire existing North American debt and support general corporate purposes.

Founded in Montreal in 1950, Velan is a manufacturer of industrial valves serving customers in critical industries worldwide. The company employs about 1,200 people and operates manufacturing facilities in nine countries, generating annual sales of approximately US$295 million in its most recently reported fiscal year.

Birch Hill is a Toronto-based mid-market private-equity firm with more than $6 billion in assets under management. The company has completed 74 investments since 1994 and currently has portfolio companies with combined annual revenue exceeding $9 billion and more than 40,000 employees.