BLUFFTON, Ind., Jan. 16 /PRNewswire-FirstCall/ -- Franklin Electric Co., Inc. (Nasdaq: FELE), the world's largest manufacturer of submersible electric motors and a leading supplier of water pumping and fuel pumping systems, announced today that it has completed the acquisition of seventy-five percent of the outstanding shares of Vertical S.p.A. ("Vertical"), for cash. Franklin Electric expects the transaction to be accretive to its earnings per share in 2009. Vertical, headquartered in Dueville (Vicenza - Italy), had 2008 net revenues of approximately 20 million Euros.
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Vertical specializes in the design, development and manufacture of pressed and welded stainless steel pumps and pump components.
R. Scott Trumbull, Chairman and Chief Executive Officer of Franklin Electric, stated. "Vertical has world class stainless steel fabrication and design capabilities. Franklin has a strong global water systems distribution network and can now partner with Vertical to address the growing worldwide demand for stainless steel water pumps. In anticipation of this investment, Franklin has already initiated projects in the Americas and Asia to introduce stainless steel pumps produced by Vertical. In Europe, Vertical will continue to supply components to its pump original equipment manufacturer customer base, many of whom are already valued customers of Franklin Electric. Of course we are pleased that Flavio Rigon, Vertical's current Managing Director, and Davide Perin, Vertical's current Director of Sales and Marketing, will continue to lead the Company in partnership with Franklin's European management team."
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels. Recognized as a technical leader in its specialties, Franklin serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to the Company's financial results, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company's business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, technology factors, litigation, government and regulatory actions, the Company's accounting policies, future trends, and other risks which are detailed in the Company's Securities and Exchange Commission filings, included in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ending December 30, 2006, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.
SOURCE Franklin Electric Co., Inc.