Franklin Electric completed its acquisition of Cat Pumps on Sept. 4, paying $350 million in cash and agreeing to a potential earnout of up to $50 million in Franklin Electric stock tied to future performance.
Cat Pumps brought about $115 million in revenue in 2025 and roughly $45 million in adjusted EBITDA, implying an EBITDA margin above 35%, according to the company. Franklin Electric said the business has a high proportion of recurring aftermarket parts and accessories revenue.
The deal expands Franklin Electric’s addressable market by more than $1 billion and adds exposure to commercial and industrial applications including industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, energy, hydro excavation and water misting.
Franklin Electric said the acquisition is expected to be accretive in 2027, its first full year of ownership. The company also said it expects net leverage to be about 1.5x after the transaction closes.
The purchase adds to Franklin Electric’s energy systems segment and will continue to operate under the Cat Pumps brand. Following these announcements, the company's shares moved -0.01%, and are now trading at a price of $99.745. If you want to know more, read the company's complete 8-K report here.
