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Midwest HVAC News
Franklin Electric announces acquisition of Cerus Industrial
Inc..
Franklin Electric Co., Inc. (NASDAQ:FELE)
announced today that it has completed the acquisition of 100 percent
of the outstanding stock of Cerus Industrial Inc., based in
Hillsboro, Oregon. Cerus designs, manufactures, and distributes
motor controls, motor starters, contactors, protection devices, and
variable frequency drives to a wide range of distributor and
original equipment manufacturers in North America who serve three
primary markets: HVAC, industrial motor sales and service, and
pumping systems. 2011 sales for Cerus were approximately $14.0
million.
Franklin Electric has agreed to pay $25.7 million in an all cash
transaction. The Company believes Cerus will be accretive to 2013
earnings per share.
Story
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Scott Trumbull, Franklin Chairman
and Chief Executive Officer, commented:
“Cerus has deep technical and manufacturing strengths in several
areas that are of strategic interest to Franklin Electric
including variable frequency drives, starters, and control
panels.
The demand for electronic drives and controls for pumping
applications is growing rapidly because these devices allow our
customers to reduce energy cost, increase system life, and
manage system parameters such as pressure and flow. While
Franklin has been a leader in applying drive and control
technologies to groundwater pumping systems, we believe that the
Cerus acquisition will enable us to further accelerate our
growth by increasing our technical and product development
capacity, broadening our product line, reducing our
manufacturing costs and moving us into adjacent market areas.”
With 3,500 employees
worldwide, Franklin Electric is a global manufacturer with over 25
manufacturing and distribution facilities located in the United
States, Germany, Czech Republic, Italy, Mexico, Canada, Australia,
Brazil, South Africa, China, and Japan.
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