On January 14, 2025, Velan Inc. (TSX: VLN) announced the divestiture of its asbestos-related liabilities through the sale of its U.S. subsidiary, Velan Valve Corp., to an affiliate of Global Risk Capital. The US$150 million (~C$215.2 million) transaction included US$143 million from Velan and US$7 million from the buyer. The deal removed all asbestos-related liabilities from Velan’s balance sheet, enhancing the company’s financial stability and positioning it for future investments. Ducera Partners LLC acted as exclusive financial advisor, while Davies Ward Phillips & Vineberg LLP and Latham & Watkins LLP provided legal counsel to Velan. Jones Day advised Global Risk Capital.

On April 3, 2025, Velan confirmed the successful completion of the asbestos divestiture. The company funded the transaction using proceeds from the sale of its French subsidiaries—Segault SAS and Velan S.A.S.—by Velan Valves Limited, a wholly owned subsidiary, to Framatome SAS. This sale, referred to as the “France Transaction,” closed earlier that week and was part of a broader financial realignment strategy.

Together, the asbestos divestiture and France Transaction significantly strengthened Velan’s financial position. With the asbestos liabilities permanently removed, Velan expected to be debt-free and better aligned for strategic investments. The transaction remained subject to customary closing conditions and financing at the time of announcement, but its successful completion marked a major step forward in Velan’s ongoing efforts to streamline operations and reduce financial risk.