The purchase price of $121 million excludes associated tax benefits and transaction costs and is subject to a post-closing working capital adjustment. Franklin Electric expects the transaction to be accretive to its earnings per share in the first year of ownership.
R. Scott Trumbull, chairman and chief executive officer of Franklin Electric, stated, "The acquisition of Little Giant Pump Co. will solidify Franklin Electric's position as a global supplier of pumping equipment for residential and commercial markets. Little Giant's product lines - sump, sewage, effluent, condensate, and industrial submersible pumps - will complement and broaden our overall pump offering and allow us to expand our customer base."
Norman Heidebrecht, president of Little Giant, said, "Our efforts are focused toward a seamless transition, while maintaining unsurpassed quality and delivery, along with world-class customer service. This acquisition will provide great opportunities to enhance current product offerings by uniting both companies' marketing and technical expertise. We look forward to an exciting future of mutually beneficial growth and continued success."
Publication date: 05/08/2006