Mergers & Acquisitions ·
Franklin Electric agrees to acquire Challenge Pumps for $181M in cash plus up to $14M earnout
FELEFranklin Electric Co Inc
Franklin Electric Co., Inc. entered into a Share Sale and Purchase Agreement to acquire all outstanding capital stock of Challenge Pumps Holdings Pty Ltd, an Australian manufacturer specializing in underground mine dewatering pumps and engineered pumping systems. Franklin Electric (Australia) Pty Ltd will pay approximately AUD $259 million ($181 million USD) in cash, subject to customary adjustments, plus contingent earnout consideration of up to AUD $20 million ($14 million USD) based on performance targets through July 2027. The transaction is expected to close in 2026 following the completion of Challenge Pumps' annual audit and satisfaction of other closing conditions. Franklin Electric intends to fund the acquisition using cash on hand and borrowings under existing credit facilities, expecting a pro forma net leverage ratio of approximately 1.8x. Franklin Electric Co., Inc. is a global leader in flow control systems for water and energy applications.