Franklin Electric has acquired high-pressure pump manufacturer Cat Pumps for $350 million in cash, with a potential earnout of up to $50 million in stock, expanding its commercial and industrial flow-control business. The deal closed September 4 and was funded with available cash and existing credit facilities. Cat Pumps, based in Minneapolis, generated about $115 million in revenue and $45 million in adjusted EBITDA in 2025, implying a roughly 39% margin. The upfront price is about 7.8 times adjusted EBITDA, potentially rising to 8.9 times if the earnout is paid. Franklin Electric expects the acquisition to boost adjusted earnings per share in 2027 and expand its addressable market by over $1 billion, while maintaining net leverage around 1.5 times to support growth and dividend increases.
Franklin Electric Co IncFranklin Electric acquires Cat Pumps for $350M cash, expected to boost adjusted EPS in 2027 and expand addressable market by over $1B.
Cat Pumps is acquired by Franklin Electric for $350M upfront plus up to $50M earnout, implying ~7.8-8.9x adjusted EBITDA.
