Franklin Electric Company Acquires Coverco S.p.A.
BLUFFTON, Ind., Jan. 7 /PRNewswire/ -- Franklin Electric Co., Inc.
(Nasdaq: FELE) announces the acquisition of Coverco S.p.A., located in Motta
di Livenza, Italy. Coverco is the leading manufacturer of oil filled
submersible electric motors and a leading manufacturer of above ground
standard and custom engineered TEFC electric motors for pumps, industrial
ventilation systems and other applications.
Terms of the acquisition have not been disclosed. The transaction will be accretive in 2002.
(William H. Lawson, Chairman and Chief Executive Officer of Franklin
Electric Company, stated, "Coverco has a substantial market position in 4-inch
oil filled submersible electric motors for water well pumping, mine dewatering
and other water systems and energy applications. Coverco's submersible
electric motors are based on a different design concept compared to Franklin's
encapsulated submersible motors and are generally sold in different
geographical markets from Franklin's principal markets. There is minimal
overlap in customers or markets between the two companies. We believe this
acquisition will strengthen our ability to serve Southern Europe and the
developing regions of the world. Coverco's above ground TEFC electric motors
are complimentary to Franklin's above ground special engineered industrial
electrical motors and the acquisition of Coverco creates an opportunity for
optimizing the design of these motors.
"We intend to operate Coverco as an independent company with its own Board
of Directors, management, brands and products. Coverco has a unique set of
customers, and we believe we can best serve these customers by not making
changes in the way they have been served by Coverco. We plan to continue
Coverco's submersible and above ground electric motor products, brands and
"We are pleased to announce that Mr. Franco Neri, one of the three
founders and a current Director of Coverco, will serve as the new President of
Coverco. This will assure uninterrupted continuity in Coverco's leadership.
Franco has an outstanding reputation in our industry both for his personal
qualities and for his electrical motor designs. In addition, we will have the
on-going counsel, wisdom and experience of Giacomo Silvestrini, Founder,
President and Director and Gianemelio Silvestrini, Founder and Director, who
will serve as Advisors to the new Coverco Board of Directors. We are also
pleased that the other members of Coverco's management team have agreed to
remain with the company and become part of the Franklin family."
Giacomo Silvestrini, Coverco founder, President and Director, added, "I
speak for all Coverco employees, when I say that we are very pleased to join
the worldwide Franklin Family. We know Franklin's management well and they
are deeply committed to the same values that have made Coverco successful. We
know Franklin has the financial strength and other resources needed to
maximize the growth of our companies."
Franklin Electric is the world's largest manufacturer of submersible water
and fueling systems motors, a leading producer of fueling systems products,
and a supplier of industrial motor products and electronic controls.
Source: Franklin Electric Co., Inc.