Franklin Electric Enters Into Agreement to Acquire Challenge Pumps, Strengthening Global Mineral Extraction Dewatering Platform

Franklin Electric entered a definitive agreement to acquire Challenge Pumps, a Perth-based underground mine dewatering specialist, for approximately US$181 million in cash plus up to US$14 million in revenue-linked earnout consideration. Challenge Pumps generated roughly US$52 million of revenue and US$18 million of EBITDA in FY2026 (ending June), a ~35% EBITDA margin, with more than 55% of revenue from recurring aftermarket parts and services over the past three years. The deal is expected to be accretive to Adjusted EPS in 2027, funded with cash on hand and existing credit facilities, leaving pro forma net leverage at approximately 1.8x.

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