Added to YB: 2026-09-11
Pitch date: 2026-09-09
FELE [bullish]
Franklin Electric Co., Inc.
Author Info
No bio for this author
Company Info
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.
Market Cap
$4.3B
Pitch Price
N/A
Price Target
N/A
Dividend
1.14%
EV/EBITDA
11.80
P/E
28.33
EV/Sales
2.06
Sector
Machinery
Category
special_situation
Franklin Electric: A High-Margin Acquisition With Room for EPS Upside
FELE (update): Franklin Electric paid $350M upfront for Cat Pumps, adding ~$45M of EBITDA at a ~39% margin for ~7.8x pre-synergy EBITDA, with most demand tied to maintenance and replacement. Franklin’s global channels and Cat’s OEM/distributor relationships create two-way cross-selling and geographic expansion opportunities. Modeled 2027 EPS accretion is $0.60-0.65 without revenue synergies; 2027 consensus EPS is currently $5.20, while ~1.5x post-deal leverage preserves strategic flexibility.
Read full article (2 min)