Franklin Electric Acquires Cat Pumps, Expanding Commercial and Industrial Flow Control Platform

Franklin Electric buys Cat Pumps for up to $400 million, adding high-margin, recurring industrial pump revenues and expanding its global flow control platform.

Rhea-AI Summary

Franklin Electric (FELE) has completed the acquisition of Cat Pumps Corporation for $350 million in cash plus a potential earnout of up to $50 million in Franklin Electric stock, effective September 4, 2026.

Cat Pumps, a Minneapolis-based leader in high-pressure plunger and piston pumps, generated approximately $115 million in revenue and $45 million in Adjusted EBITDA in 2025, with EBITDA margins above 35% and a high share of recurring aftermarket parts and accessories revenue. The acquisition adds a premium brand and proprietary high-pressure technology serving mission-critical commercial and industrial markets such as industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, energy, hydro excavation, and water misting.

The deal expands Franklin Electric’s addressable market by more than $1 billion, is expected to be accretive in the first full year and to Adjusted EPS in 2027, and will be reported within the Energy Systems segment. Post-transaction net leverage is expected to be about 1.5x.

Positive

• Acquisition price $350 million cash plus up to $50 million stock earnout
• Cat Pumps 2025 revenue approximately $115 million with Adjusted EBITDA of $45 million
• EBITDA margins above 35% with high recurring aftermarket parts and accessories revenue
• Addressable market expanded by more than $1 billion in commercial and industrial flow
• Financial impact expected accretive in first full year and to Adjusted EPS in 2027
• Post-deal net leverage expected around 1.5x, preserving balance sheet flexibility

Negative

• None.

News Explained

Franklin Electric completed the acquisition on September 4, 2026, funding the $350 million cash payment with available cash and borrowings under existing credit facilities; the release does not state how much came from either source.

Market Context

At publication, FELE's prior close was $99.76, up 0.49%; the acquisition followed a prior acquisitio...

Analysis

At publication, FELE's prior close was $99.76, up 0.49%; the acquisition followed a prior acquisition announcement with a -0.87% 24-hour reaction, providing company-specific transaction context rather than a post-headline move.

Key Figures

Cash purchase price: $350 million Potential earnout: Up to $50 million in Franklin Electric stock Adjusted EBITDA: $45 million +4 more

Cash purchase price

$350 million

Cat Pumps acquisition

Potential earnout

Up to $50 million in Franklin Electric stock

Based on future performance

Adjusted EBITDA

$45 million

Cat Pumps in 2025

EBITDA margin

Above 35%

Cat Pumps financial profile

Addressable market expansion

$1+ billion

Added by the transaction

Adjusted EPS accretion

2027

Expected to be accretive to Adjusted EPS

Acquisition completion

September 4, 2026

Transaction completed

Previous Acquisition Reports

1 past event · Latest: Feb 14

Same Type 1 event

1. Feb 14

   Barnes de Colombia acquisition

   24h Move

   -0.9%

   Definitive agreement expanded industrial and commercial pump presence across Latin America.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, net leverage ratio, earnout, positive displacement pumps, +1 more

5 terms

adjusted ebitda financial

"The company generated approximately $115 million in revenue and $45 million in Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net leverage ratio financial

"Franklin Electric expects to have a net leverage ratio1 of approximately 1.5x"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

earnout financial

"plus a potential earnout of up to $50 million in Franklin Electric stock"

An earnout is a financial agreement in which part of the purchase price for a business is paid later, based on the company's future performance. It acts like a bonus system, where sellers earn extra money if the business hits certain goals, aligning their interests with the buyer’s success. Investors pay attention to earnouts because they influence the total deal value and can affect the company's future financial health.

positive displacement pumps technical

"a leading provider of high-pressure, positive displacement pumps"

A positive displacement pump is a mechanical device that moves fluid by trapping a fixed volume in a chamber and forcing it from the inlet to the outlet, producing a steady flow regardless of pressure changes. Think of it like a syringe or gear set that pushes set amounts each cycle; investors care because these pumps are central to industries (chemical, oil, food, medical) where reliability, service contracts and replacement cycles create predictable equipment sales and aftermarket revenue.

reverse osmosis technical

"industrial cleaning, reverse osmosis and water treatment"

A water-cleaning process that uses pressure to force water through a very fine membrane, leaving salts, minerals and many contaminants behind — like pushing juice through an extremely tight sieve so only pure liquid passes. Investors care because reverse osmosis is a core technology for desalination, industrial water recycling and many manufacturing processes, driving capital spending, recurring service revenue and regulatory or environmental risk and opportunity for companies involved.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Flow control leader adds complementary high-pressure technology, an industry leading brand, and exposure to growing commercial and industrial end markets​ in high uptime applications.

• Increases exposure to attractive, high growth end-markets across mission critical applications, including: industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, energy, specialty vehicles, and other commercial & industrial markets
• Expands installed base with resilient after-market and consumables revenue
• Enhances commercial and industrial position in high uptime applications
• Expected to be accretive to Adjusted EPS¹ in 2027
• Attractive financial profile with more than $100 Million in revenue, EBITDA margins¹ above 35%
• Expected to create compelling revenue synergies across Franklin’s portfolio

FORT WAYNE, Ind., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE), a global leader in flow control with a focus in water and energy systems, today announced it has completed the acquisition of Cat Pumps Corporation, a leading provider of high-pressure, positive displacement pumps, for $350 million in cash plus a potential earnout of up to $50 million in Franklin Electric stock based on future performance.​

Cat Pumps, based in Minneapolis with global operations, is a market leader in high-pressure plunger and piston pumps serving commercial and industrial applications. The company generated approximately $115 million in revenue and $45 million in Adjusted EBITDA¹ in 2025, with industry-leading margins and a high proportion of recurring aftermarket parts and accessories revenue.​

“This acquisition accelerates our strategy to build a broader, more resilient flow control company,” said Joe Ruzynski, Chief Executive Officer of Franklin Electric. “Cat Pumps brings a premium brand with exceptional customer loyalty, proprietary technology, and deep expertise in demanding commercial and industrial applications. Combined with Franklin’s commercial capabilities, global footprint, and systems expertise, we see meaningful opportunities to expand the business and better serve customers across our combined markets.”​

Key Strategic and Financial Benefits of the Transaction

• Strengthens Franklin Electric’s position in attractive, high-growth commercial and industrial end markets across mission-critical applications: Cat Pumps’ portfolio of leading high-pressure solutions will strengthen Franklin Electric’s presence across growing end markets, including energy, hydro excavation, industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, and water misting. The sustained demand for these mission-critical solutions is supported by secular trends, advancing Franklin Electric’s strategic priorities and establishing a highly attractive and resilient growth engine.
• Broadens Franklin Electric’s commercial and industrial flow platform with a comprehensive suite of complementary solutions: The transaction strengthens Franklin Electric’s industrial platform by adding a complementary product line and expands Franklin Electric’s addressable market by $1+ billion, while maintaining the company’s focus on high-quality, customer focused, high-margin businesses. ​
• Expands large and growing installed base and broadens Franklin Electric’s access to durable aftermarket revenue streams: The acquisition provides a stream of stable, recurring and high-margin aftermarket and accessory revenue.
• Supports strategy of long-term profitable growth: The acquisition is expected to be accretive in the first full year of Franklin Electric's ownership. The transaction is expected to support Franklin Electric’s long-term margin and return objectives. Franklin Electric expects to leverage its international distribution network to expand Cat Pumps' presence in select industrial and infrastructure markets outside North America.​
• Maintains strong financial position and flexibility to execute balanced capital allocation priorities: Franklin Electric expects to have a net leverage ratio¹ of approximately 1.5x following the close of the transaction. Franklin Electric’s strong balance sheet and robust cash flows will create flexibility to continue to invest in key growth initiatives, while maintaining its strong track record of shareholder returns, including 34+ years of dividend growth.
  

Ruzynski added: “I am excited to welcome the Cat Pumps team to Franklin Electric. They have built an outstanding reputation for reliability and technical performance. Our teams share a strong customer-first culture, and we are excited to bring Franklin Electric’s market development, systems capabilities, and channel strength to help accelerate growth in both existing and adjacent applications where customers demand quality, innovation and service. ”​

Transaction Details

The acquisition was completed on September 4, 2026. Franklin Electric funded the transaction with a combination of available cash and borrowings under its existing credit facilities. Cat Pumps will be reported as part of Franklin Electric’s Energy Systems segment and will continue to go to market under the Cat Pumps brand.

Advisors

Rothschild & Co served as financial advisor to Franklin Electric, and Taft Stettinius & Hollister LLP and Bird & Bird served as its legal advisors. Houlihan Lokey served as financial advisor to Cat Pumps, and Glaser Weil Fink Howard Jordan & Shapiro LLP as its legal advisor.​

Forward Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. This release contains forward-looking statements, including statements regarding the anticipated benefits of Franklin Electric’s acquisition of Cat Pumps, expected financial performance and Adjusted EPS accretion, anticipated revenue synergies, opportunities to expand Cat Pumps’ business in existing and adjacent markets, integration plans, future margin and return objectives, expected leverage and capital allocation flexibility, and other expectations regarding the combined businesses. These forward-looking statements are based on information currently available to management and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

These risks and uncertainties include, among others, Franklin Electric’s ability to successfully integrate Cat Pumps; retain key customers, distributors, suppliers and employees; realize the anticipated strategic, financial and operating benefits of the acquisition, including expected revenue synergies and Adjusted EPS accretion; manage integration costs, business disruption and potential unknown or contingent liabilities; achieve the performance conditions associated with the contingent earnout consideration; and successfully expand Cat Pumps’ business in existing and adjacent markets. Additional risks and uncertainties include industry and market reaction to the transaction; general economic and currency conditions; conditions specific to Franklin Electric’s businesses and industries; weather conditions; market demand; competitive factors; changes in distribution channels; supply constraints; the effect of price increases; raw material, logistics and labor costs; technology factors; litigation; government and regulatory actions; changes in tariffs or the impact of any such changes on Franklin Electric’s financial results; accounting policies; and other risks detailed in Franklin Electric’s filings with the Securities and Exchange Commission, including Item 1A of Part I of its Annual Report on Form 10-K for the year ended December 31, 2025, and Item 1A of Part II of its subsequent Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements speak only as of the date of this release, and Franklin Electric assumes no obligation to update any forward-looking statements, except as required by law.

About Franklin Electric

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers worldwide in residential, commercial, agricultural, industrial, municipal and fueling applications. Franklin Electric is proud to be recognized in Newsweek’s lists of America’s Most Responsible Companies 2025, Most Trustworthy Companies 2025, and Greenest Companies 2025. 

________________________

_{¹ Non-GAAP measures used above: 1) “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense, adjusted to exclude restructuring and realignment costs, special charges and tax-related special items, as applicable; 2) “EBITDA margin” is defined as Adjusted EBITDA divided by revenue; 3) “Adjusted Earnings Per Share” is defined as diluted earnings per share, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, special charges and tax-related special items, as applicable; 4) “Net Leverage Ratio” is defined as total debt less cash and cash equivalents divided by Adjusted EBITDA.}

Franklin Electric Contact:
Jennifer Wolfenbarger / Dean Cantrell
Franklin Electric Co., Inc.
InvestorRelations@fele.com

FAQ

How is Franklin Electric funding the Cat Pumps acquisition?

Franklin Electric is funding the transaction with a combination of available cash and borrowings under its existing credit facilities.

What are the key end markets served by Cat Pumps?

Cat Pumps serves commercial and industrial applications including energy, hydro excavation, industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, water misting, specialty vehicles, and other commercial and industrial markets where high uptime and high-pressure solutions are required.

How will Cat Pumps be integrated and reported within Franklin Electric?

Cat Pumps will be reported as part of Franklin Electric’s Energy Systems segment and will continue to go to market under the Cat Pumps brand.

What recurring revenue benefits does Franklin Electric expect from the acquisition?

The acquisition adds a large and growing installed base and provides access to stable, recurring and high-margin aftermarket and accessory revenue streams from Cat Pumps’ products.

How does Franklin Electric plan to grow Cat Pumps internationally?

Franklin Electric expects to use its international distribution network to expand Cat Pumps’ presence in select industrial and infrastructure markets outside North America.

What does Franklin Electric state about its capital allocation flexibility after the deal?

The company expects to maintain a strong financial position and a net leverage ratio of approximately 1.5x, which it states will allow continued investment in growth initiatives while sustaining its record of more than 34 years of dividend growth.