Franklin Electric Co., Inc. (FELE) has entered into a definitive agreement to acquire Cat Pumps Corporation. The transaction, valued at approximately $350 million in cash, was executed on September 4, 2026, through Franklin Electric’s wholly-owned subsidiary, FE Force, LLC.
Franklin Electric will pay the cash consideration using a combination of available cash and borrowings under its existing credit facilities. In addition to the cash payment, the company will issue performance-based restricted stock units (PRSUs) to the sellers. The PRSUs have an aggregate target value of $25 million, with a payout range of 0% to 200% of this value. The payout is contingent upon Cat Pumps achieving specific threshold gross profit targets during a measurement period running from January 1, 2028, to December 31, 2028.
Cat Pumps is a manufacturer and wholesale supplier of water systems, components, and accessories based in Minneapolis, Minnesota, with global operations. The company is a market leader in high-pressure plunger and piston pumps. According to the filing, Cat Pumps generated approximately $115 million in revenue and $45 million in Adjusted EBITDA in 2025, with EBITDA margins exceeding 35%.
Franklin Electric intends to report Cat Pumps as part of its Energy Systems segment. The company stated that the acquisition is expected to be accretive to Adjusted Earnings Per Share (Adjusted EPS) in 2027. Following the close of the transaction, Franklin Electric expects to maintain a net leverage ratio of approximately 1.5x.
