Flowserve Corporation has signed a definitive agreement to acquire the Valves Division of Trillium Flow Technologies for $490MM in cash. TVD manufactures highly engineered, mission-critical valves used in nuclear and conventional power generation, industrial processing and other critical infrastructure applications.

The transaction is anticipated to close in mid-2026, subject to customary regulatory approvals.

The deal reflects broader consolidation within the U.S. flow control sector, as industrial infrastructure companies position themselves to capture long-term demand growth in nuclear power and critical energy applications. The acquisition signals continued strategic appetite for highly engineered, mission-critical assets with recurring aftermarket revenue streams — a profile increasingly sought by industrial acquirers amid rising energy infrastructure investment globally.

Strategic Rationale

Flowserve Corporation is a Dallas-based global provider of flow control products and services — including pumps, seals and valves — operating across more than 50 countries and serving the energy, industrial and infrastructure sectors. Trillium Flow Technologies is a privately held global designer, manufacturer and aftermarket services provider of engineered valves and pumps, with a portfolio of 15 established brands serving customers across power generation, oil & gas, water and broader industrial markets. Its Valves Division specializes in highly engineered, mission-critical valves and actuation systems used in nuclear and conventional power generation and critical infrastructure applications.

Flowserve is likely acquiring TVD to expand its position in nuclear and conventional power generation markets. TVD’s product portfolio encompasses highly engineered valves and actuation systems deployed across nuclear reactors, traditional power facilities and critical industrial infrastructure. The division maintains a global installed base of over 200,000 units — including components serving 115 nuclear reactors — which is expected to extend Flowserve’s nuclear reactor coverage to more than 300 units upon close.

The acquisition is structured to deepen Flowserve’s technical capabilities in safety-critical, high-specification environments where switching costs are elevated and aftermarket entitlement — encompassing spare parts, replacements and maintenance services — is substantial. Flowserve has indicated the transaction is expected to be accretive to adjusted operating income in 2026.

TVD carries a product and brand portfolio with approximately 200 years of combined engineering heritage, serving a global customer base across nuclear, industrial and infrastructure end markets. Its high-teens adjusted EBITDA margins reflect a product mix weighted toward engineered-to-order and specification-driven applications, which tend to carry greater pricing power than commodity flow control products.

Market Context

The transaction reflects ongoing consolidation among U.S. industrial valve and flow control manufacturers, driven by sustained infrastructure spending, energy transition investment and anticipated buildout of nuclear generation capacity. Nuclear power has attracted renewed institutional attention as a dispatchable, low-carbon baseload source — a dynamic that has increased the strategic value of suppliers with established nuclear qualifications and installed base relationships.

For Flowserve, the addition of TVD is consistent with its stated objective of building a more cycle-resilient business by increasing exposure to regulated, long-duration end markets with recurring service demand. Aftermarket revenues — historically more stable than new equipment sales across industrial cycles — are expected to represent a meaningful component of TVD’s long-term contribution.

The purchase price of approximately 12.3x 2025 adjusted EBITDA is broadly in line with recent precedent transactions for engineered valve and flow control assets with established nuclear exposure, where scarcity of qualified suppliers and mission-critical application profiles may support premium valuations.

Industry Implications

For other flow control manufacturers with exposure to power generation markets, the deal could increase pressure to pursue similar capability acquisitions, particularly as nuclear power receives renewed consideration as a long-term baseload energy source in several major markets. The transaction also underscores aftermarket service as a central strategic driver in flow control M&A — Flowserve’s emphasis on TVD’s installed base and aftermarket entitlement suggests that acquirers in this space may increasingly value recurring service revenue alongside the underlying product portfolio. With regard to valuation, the approximately 12.3x adjusted EBITDA multiple paid for TVD — a carve-out with high-teens margins and a concentrated nuclear and power generation customer base — may serve as a reference point for future transactions involving similarly positioned assets, where qualification barriers and established customer relationships are reflected in pricing.

About DelMorgan & Co. (www.delmorganco.com)

With over $300 billion of successful transactions in over 80 countries, DelMorgan‘s Investment Banking professionals have worked on some of the most challenging, most rewarding and highest profile transactions in the U.S. and around the globe.

DelMorgan specializes in capital raising and M&A advisor services for companies across all industries and is recognized as one of the leading investment banking practices in California and globally.

Learn more about DelMorgan’s Capabilities, Transactions, and why DelMorgan is ranked as the #1 Investment Bank in Los Angeles and #2 in California by Axial.