Franklin Electric announced Tuesday that it has acquired Cat Pumps, a leading maker of high-pressure plunger and piston pumps.
The motor, pump and control supplier said it paid $350 million in cash for the business; the deal, which officially closed Sept. 4, could also include a potential earnout of $50 million in Franklin Electric stock.
Franklin officials said that Cat Pumps’ high-pressure, positive displacement pumps would complement its existing industrial platform and add a leading global brand — as well as exposure to commercial and industrial end markets in “high uptime applications.” The company expects the addition to bolster its overall addressable market by over $1 billion.
Cat Pumps generated about $115 million in revenue and $45 million in Adjusted EBITDA last year, and offers recurring aftermarket and accessories revenue and “industry-leading margins,” Franklin officials said. The company will join Franklin Electric’s Energy Systems segment but continue to go to market under the Cat Pumps brand.
Minneapolis-based Cat Pumps also operates locations in the U.K., Belgium and Germany.
“This acquisition accelerates our strategy to build a broader, more resilient flow control company,” Franklin Electric CEO Joe Ruzynski said in a statement. “Cat Pumps brings a premium brand with exceptional customer loyalty, proprietary technology, and deep expertise in demanding commercial and industrial applications.”
