Franklin Electric Acquires U.S. Groundwater Distribution Company

Rhea-AI Summary

Franklin Electric Co. (NASDAQ: FELE) has announced the acquisition of Blake Group Holdings for $27.1 million in cash, finalized on December 31, 2021. Blake, a key player in the groundwater distribution sector with approximately $74 million in annual sales, operates 14 locations in the northeastern U.S. DeLancey Davis, President of Headwater Companies, emphasized that this acquisition enhances their presence in the New York and New England markets, aligning with their goal to lead in water systems distribution.

Positive

• Acquisition enhances geographic reach in the New York and New England markets.
• Blake Group adds approximately $74 million in annual sales revenue.
• Strengthens Franklin Electric's position in the groundwater distribution sector.

Negative

• None.

FORT WAYNE, Ind., Jan. 04, 2022 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that on December 31, 2021 its wholly owned subsidiary Headwater Companies, LLC acquired Blake Group Holdings, Inc., a Connecticut corporation, for $27.1 million in cash. Blake is a professional groundwater distributor operating fourteen locations throughout the northeast United States. Blake has approximately $74 million of consolidated annual sales.

DeLancey Davis, President of Headwater Companies, the wholly owned Distribution Segment of Franklin Electric, commented:

“We are pleased to add Blake to the Headwater family. Blake has served the pump industry and related water resource markets for over 40 years and has an outstanding reputation within the industry for quality service and technical depth. The acquisition of Blake adds to Headwater’s commitment to the critical groundwater channel, provides geographic expansion in the New York and New England markets and furthers our objective of being the leading source of distribution for water systems solutions in the U.S.”

Headwater Companies, LLC is a collection of leading groundwater distributors. Headwater is a focused groundwater distribution organization that delivers quality products and leading brands to the industry, providing contractors with the availability and service they demand to meet their application challenges.

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric 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 market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, 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, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, 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 31, 2020, 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.

Contact:	Jeffery L. Taylor
	Franklin Electric Co., Inc.
	260-824-2900

FAQ

What is the value of Franklin Electric's acquisition of Blake Group Holdings?

The acquisition was valued at $27.1 million in cash.

When was the acquisition of Blake Group Holdings completed?

The acquisition was completed on December 31, 2021.

How will Blake Group Holdings impact Franklin Electric's business?

Blake Group's integration is expected to enhance Franklin Electric's market presence, especially in the New York and New England regions.

What are the annual sales figures for Blake Group Holdings?

Blake Group Holdings has approximately $74 million in consolidated annual sales.