Franklin Electric acquires interests in US groundwater distribution companies for $89m
Franklin Electric has signed an agreement to acquire interests in three groundwater market distribution companies in the US in a deal valued at $89m.
Under the terms of the agreement, Franklin has already completed the acquisition of 2M and Western Hydro.
Acquisition of DSI is expected to close before the end of the second quarter of this year.
Franklin Electric chairman and CEO Gregg Sengstack said: “The specialised groundwater distribution channel in the US through which we sell our products is an important element in the ultimate sale, support and specification to the installing contractors.
"Working in partnership with our distributors, Franklin Electric has developed a broad array of products and systems solutions that will only grow as regulatory and efficiency demands increase in North America.”
The acquired distributors will be operated by Franklin Electric under an entity named Headwater Companies.
Sengstack added: “By forward integrating into distribution in the US, Franklin Electric is taking a logical next step in our evolution as a groundwater pumping systems company.”
Set to operate as full line wholesale distributors, the Headwater Companies will focus on total water systems support, and will distribute products from all industry manufacturers.
Franklin’s new distribution entity will have a national footprint of sixty locations.