FRANKLIN ELECTRIC CO INC (FELE) Form 8-K — Oct 28, 2026
Franklin Electric (NASDAQ: FELE) entered into a definitive agreement on October 27, 2026 to acquire Challenge Pumps Holdings Pty Ltd, an Australian underground mine dewatering specialist, for approximately AUD $259 million (US$181 million) in cash plus up to AUD $20 million (~US$14 million) in earnout tied to revenue targets through July 2027. Challenge Pumps generated roughly US$52 million in FY2026 revenue and US$18 million in EBITDA (~35% margin), with more than 55% of revenue from recurring aftermarket parts and services. The deal is expected to be accretive to Adjusted EPS in 2027.
Key figures
- Deal Value Usd
- 181000000
- Earnout max
- AUD $20.0 million (~US$14 million), measurement period ending July 2027
- Cash payment aud
- AUD $259 million (~$181 million USD)
- Target ebitda fy2026
- US$18 million (A$26 million), ~35% EBITDA margin
- Target revenue fy2026
- US$52 million (A$73 million)
- Target working capital amount
- $12,000,000 AUD
- Target aftermarket revenue pct
- >55% over last three years
- Expected net leverage post close
- ~1.8x
AI analysis
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