Statement as issued Monday by Franklin Electric:
FORT WAYNE, Ind., June 9, 2014 – Franklin Electric Co., Inc. (Nasdaq:FELE) announced today that it has acquired Bombas Leao S.A., based in Monte Azul Paulista, State of Sao Paulo, Brazil.
Bombas Leao designs, manufactures, and distributes submersible groundwater pumping equipment through manufacturing facilities in Monte Azul Paulista, Teresina and a distribution facility in Recife. In 2013 Bombas Leao net revenues were approximately BRL 67 million or about US$ 30 million.
The Company believes the transaction will be accretive to 2014 Earnings per Share (EPS).
Gregg Sengstack, Franklin Electric Chief Executive Officer, commented:
“Brazil is one of the largest ground water pumping markets in the world and a cornerstone of our developing markets growth strategy.
Over the years, the Franklin brand was established in the country principally through the importation of our submersible motors by pump companies. In 2008, we acquired Motobombas Schneider, located in Joinville, Brazil, a leading residential pumping systems company with an extensive distribution network. Since acquisition, Franklin
(Schneider) Motobombas sales have doubled, and, this month, we are opening a new factory and training center to support the continued growth of this business.
Bombas Leao, established in 1964, and owned by the Plaza family, is a leading supplier of groundwater pumps principally used in agriculture, industrial and municipal applications. We have maintained contact with the Plaza family over the years and are pleased with their decision to sell their company to Franklin Electric. The Bombas Leao acquisition will provide additional submersible pump products, extending the Franklin Electric product offering, expand our distribution reach and further position Franklin Electric as a market leader in groundwater pumping equipment in Latin America.”