Birch Hill Equity Partners has agreed to acquire Velan, a manufacturer of industrial valves, for C$204 million. The private equity deal positions the Toronto-based firm to take the publicly traded Velan private. This transaction follows a period of strategic review for the valve maker, which has faced market pressures in its core industrial segments.

The acquisition represents a classic take-private move for Birch Hill, allowing it to implement operational changes away from public market scrutiny. Velan’s valves serve critical applications in sectors like energy and power generation. This buyout provides Birch Hill with a established platform in the industrial manufacturing space, a sector often favored for its stable cash flows.

Shareholders will vote on the transaction later this year. If approved, Birch Hill will oversee Velan’s next phase of growth, potentially focusing on cost efficiencies and market expansion. The deal underscores the ongoing appetite of private equity for stable, asset-rich companies in the industrial sector, even amid broader economic uncertainty.