Franklin Electric to Buy Challenge Pumps for About $181M Plus Up to $14M Earnout
FELE is trading near its 52-week low of $89.535 (9.5% above the low).
Summary
Franklin Electric agreed to acquire Challenge Pumps for about $181 million in cash, with up to $14 million more in contingent consideration tied to future performance. The deal is modest next to the company's roughly $4.3 billion market value but continues an active stretch of bolt-on buying: it closed the $350 million Cat Pumps acquisition in September and picked up three water treatment companies for $50 million earlier in the year. Challenge Pumps adds to the pump portfolio, and the earnout structure limits upfront risk if the business underperforms.
At the time of this announcement, FELE was trading at $98.07 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $89.54 to $115.82. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.