BLUFFTON, Ind. - Franklin Electric Co. Inc., a major manufacturer of submersible electric motors and a global supplier of water pumping systems and fuel pumping systems, announced that it has entered into a definitive agreement to acquire Little Giant Pump Co. in a stock purchase transaction. Little Giant is a wholly owned subsidiary of Tecumseh Products Co.

Little Giant Pump Co. employs approximately 350 people in two facilities, both located in Oklahoma City. Little Giant pumps are used in a broad range of commercial and consumer applications including HVAC, plumbing/wastewater, water gardening, swimming pool and aquarium maintenance, decorative fountains, and industrial and OEM water transfer applications.

The purchase price of $121 million excludes associated tax benefits and transaction costs and is subject to certain adjustments at closing. After taking tax benefits into account, the purchase price is approximately one times Little Giant's 2005 fiscal year sales. Franklin Electric expects the transaction to be accretive to its earnings per share in the first year of ownership. It intends to fund the purchase with borrowings under its credit facility and cash on hand. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close shortly after such approval is obtained.