07:30 AM EST, 01/15/2025 (MT Newswires) -- Velan ( VLNSF ) , a global manufacturer of industrial valves, overnight Tuesday said it is divesting its asbestos liabilities and selling its French subsidiaries as it restructures.

The company has sealed an agreement with Global Risk Capital that will see it permanently divest its asbestos-related liabilities. It will transfer the relevant assets and liabilities into a new subsidiary and sell its U.S. subsidiary, Velan Valve Corp, which will have been capitalized with US$143 million from Velan ( VLNSF ) and US$7 million from Global Risk.

Velan ( VLNSF ) is also selling its French subsidiaries to Framatome, a nuclear energy company, for US$198.4 million.

"These transactions would meet two key financial objectives, namely the reduction of risk and resolution of our asbestos-related liabilities through the divestiture transaction and the strengthening of our balance sheet," said Rishi Sharma, Chief Financial and Administrative Officer of Velan ( VLNSF ).

Velan ( VLNSF ) also reported a swing to third quarter adjusted profit as sales rose 18%. Adjusted profit rose to US$8.5 million, or US$0.39 per share, compared with an adjusted loss of US$7 million, or US$0.32 per share, last year. Sales rose 18% to US$73.4 million.

Restructuring expenses rose to US$74.5 million, from US$2.3 million last year. Asbestos-related costs were US$69.1 million and transaction-related costs, US$5.4 million. Last year, restructuring expenses were $2.3 million in connection with asbestos-related costs, the company said.

The company will pay a dividend of $0.03 per share on Feb. 28.