Franklin Electric closes Cat Pumps acquisition for $350 million cash plus performance awards

Franklin Electric Co., Inc. (Nasdaq: FELE) completed its acquisition of Cat Pumps Corporation after entering a Share Purchase Agreement on September 4, 2026. Its wholly owned acquisition subsidiary, FE Force, LLC, purchased all outstanding Cat Pumps capital stock for approximately $350 million in cash, subject to adjustment, plus performance-based restricted stock units with a $25 million aggregate target value.

A completed purchase of Cat Pumps

Franklin Electric disclosed the completed acquisition in a Form 8-K filed September 8 for the September 4 event. Item 2.01, Completion of Acquisition or Disposition of Assets, incorporates the transaction terms in Item 1.01. FE Force, LLC is Franklin's acquisition subsidiary; Cat Pumps is the acquired business. The filing also covers Items 3.02, 7.01 and 9.01.

Cat Pumps manufactures and supplies water systems, components and accessories, specializing in high-pressure plunger and piston pumps for commercial and industrial applications. It is primarily based in Minneapolis, Minnesota, and operates globally.

Cash at close, stock contingent on 2028 performance

Franklin funded the approximately $350 million cash portion with available cash and borrowings under existing credit facilities. That cash consideration remains subject to adjustment under the Share Purchase Agreement.

The performance-based restricted stock units, or PRSUs, have an aggregate target value of $25 million. Payout can range from zero to 200% of target, depending on Cat Pumps' gross-profit thresholds during the January 1 through December 31, 2028 measurement period. Earned awards settle after the results are determined.

The company's Exhibit 99.1 announcement describes this contingent component as a potential earnout of up to $50 million in Franklin Electric stock, consistent with the maximum payout on the $25 million target. It is a performance condition, not an amount already earned.

A larger commercial and industrial flow-control business

According to Exhibit 99.1, Cat Pumps generated approximately $115 million in revenue and $45 million in Adjusted EBITDA in 2025. Adjusted EBITDA is a company-reported non-GAAP metric.

Franklin says the acquisition expands its commercial and industrial flow-control business and its aftermarket and consumables exposure. The cited end markets include industrial cleaning, reverse osmosis and water treatment, vehicle cleaning, energy, specialty vehicles and other commercial and industrial applications requiring high uptime.

The acquisition matters because it adds an operating pump franchise to Franklin's commercial and industrial portfolio, with cash consideration supplemented by an award tied to future gross profit. Franklin expects the transaction to be accretive to Adjusted EPS in 2027 and expects approximately 1.5 times net leverage following the close. Both are company expectations using non-GAAP measures, rather than demonstrated post-acquisition results.

What remains to be demonstrated

The final adjusted cash consideration and eventual PRSU payout remain unresolved in the disclosure. The 2028 gross-profit measurement period is still ahead, and the company's expected 2027 Adjusted EPS accretion and post-close leverage require subsequent reporting to assess. The disclosure does not establish a realized earnings benefit or an earned stock payout.