Franklin Electric Announces the Acquisition of Industrias Schneider S.A.
Franklin Electric Co.announced yesterday that it has completed the acquisition of all of the outstanding shares of Industrias Schneider S.A. for cash.
Franklin Electric expects the transaction to be accretive to its earnings per share in 2008.
Industrias Schneider, headquartered in Joinville-SC, Brazil, had 2007 net revenues of approximately R 71 million.
R. Scott Trumbull, Chairman and Chief Executive Officer of Franklin Electric, stated, "The Industrias Schneider acquisition advances our strategy to expand Franklin's business base in developing regions where the demand for our products is growing most rapidly. Schneider is the leading Brazilian producer of pumps for the residential, agricultural, and light commercial markets. Their market position is complementary to Franklin's strength in submersible well and wastewater-pumping systems for the same end users. We are confident that we can accelerate Schneider's strong organic growth by selling Franklin and Little Giant branded products through the extensive Schneider distribution network in Brazil. We will also seek to expand the sale of Schneider pumps through Franklin's distribution networks in markets outside of Brazil."
"Industrias Schneider, founded in the late 1940s, has built its reputation on the same principles as Franklin: Quality, Availability, Service and Innovation. Schneider's customer base of approximately 5,000 distributors within Brazil is supported by 60 independent sales representatives and 280 company employees located in two manufacturing plants and four distribution facilities."
"The Schneider brand is well known and respected within the Brazilian market and the company has seen steady revenue and profit growth for the last several years. We are pleased that the Schneider family has the confidence in Franklin Electric to continue on with the shared vision of the two companies.
Both Roberto Schneider, Chief Executive Officer and Renato Schneider, Chief Financial Officer will provide consulting services through the transition."
"We are pleased that Johann Heussinger, who recently retired after a 38 year career with ABS, a leading global producer of wastewater pumping systems, and a resident of Brazil for the last 30 years, will be assuming the role of Chief Executive Officer for Industrias Schneider. Fernando Schneider, currently the Industrial Manager of Schneider and son of Roberto, will lead the introduction of Franklin and Little Giant product into Schneider's Brazilian network."
Roberto Schneider, Chief Executive Officer and Director, stated "Franklin again is innovating: In my view it is the first American pump Company to seriously enter our segment of the Brazilian market. I really believe this is a great step for both Franklin and Schneider, which will allow unlimited growth possibilities for the two companies."
About Franklin Electric
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels.
Recognized as a technical leader in its specialties, Franklin serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
Source: Franklin Electric Co., Inc.