Franklin Electric Announces Investment in Pioneer Pump
Franklin Electric Co., Inc., the world’s largest manufacturer of submersible electric motors and a global supplier of water pumping systems and fuel pumping systems has purchased an equity interest in Pioneer Pump, Inc. of Canby, Oregon, together with options to purchase substantially all of the remaining equity of Pioneer Pump, Inc.
In addition, Franklin Electric acquired certain assets from Pioneer Pump, Inc. that expand the Company’s large centrifugal pump offering. Pioneer is a manufacturer and marketer of a complete line of centrifugal pumps for the agricultural, industrial, mining and municipal markets.
R. Scott Trumbull, Chairman and Chief Executive Officer of the Company, stated: “the investment in Pioneer Pump and certain of its assets will expand Franklin Electric’s product offering to include a line of large centrifugal pumps. We believe the new product line will be well received by many of our customers. Under the agreement reached with Pioneer shareholders, Franklin Electric will introduce a complete line of large centrifugal pumps during the first quarter of 2006 as part of its Franklin Pump Systems, Inc. (“FPS”) brand pump offering. The Company’s 2006 market introduction of large pumps will also include a complete line of submersible turbine pumps for the agricultural and municipal water markets.”
The Company paid for the Pioneer acquisition out of cash on hand. While the Company expects the acquisition to be accretive to earnings, given the size and timing of the transaction, the Company expects that the accretion in 2005 will be approximately one cent per share.
This investment reflects Franklin Electric’s commitment to be the leader in fresh water pumping systems, to increase its profitability and growth through targeted acquisitions, and to increase overall pump market coverage and customer base.
Franklin Electric is a global leader in the production and marketing of groundwater and fuel pumping systems and is a technical leader in submersible motors, drives, controls, and monitoring devices.
Source: Franklin Electric Co., Inc.