Franklin Electric Sells Engineered Motor Products Division
Franklin Electric announced the sale of its Engineered Motor Products Division (“EMPD”) located in Bluffton, Indiana to CapitalWorks, LLC (“CapitalWorks”) an equity firm based in Cleveland, Ohio.
Evarts Capital, LLC advised Franklin Electric on the transaction. Terms of the asset sale were not disclosed.
EMPD manufactures and sells fractional horsepower electric motors primarily to original equipment manufacturers (“OEMs”) for specialty applications such as ice cream dispensers, electric hoists, paint mixing machines and food processing applications. EMPD’s revenue represents less than 10% of Franklin Electric’s consolidated sales.
R. Scott Trumbull, Chairman and Chief Executive Officer of Franklin Electric stated, “For a variety of reasons the Franklin management and Board of Directors have determined that continuing to own and operate the Engineered Motor Products Division is no longer complementary to our future growth plans. So while we believe this divestiture is in the best interests of our shareowners—we are pleased that we have found a buyer who recognizes the value of the business and intends to continue operating it in Bluffton, IN.”
John M. Mueller, President of Capital Works LLC, stated, "The Capital Works team looks forward to working with EMPD management to increase the growth rate and the profitability of the business. The new company will be named Bluffton Motor Works, LLC and will have our support in continuing to provide excellent quality and service to the existing and future customer base.”
Source: Franklin Electric Co., Inc.