BLUFFTON, Ind. -- Franklin Electric Co. Inc., manufacturer of submersible electric motors and a supplier of water pumping systems and fuel pumping systems, said that it has acquired Healy Systems Inc., in a stock purchase transaction.
Hudson, N.H.-based Healy Systems is a provider of Stage II vapor recovery systems and components used primarily at gas stations to reduce gasoline vapor emissions during vehicle refueling.
The purchase price was approximately $35 million plus a percentage of Healy Systems product sales over the next [image-nocss] five years, and is subject to a post-closing working capital adjustment. The upfront $35 million payment represents approximately seven times trailing 12-month EBITDA (earnings before interest, taxes, depreciation and amortization).
Franklin Electric said it expects the transaction to be accretive to its earnings per share in the first year of ownership.
The acquisition of Healy Systems will solidify Franklin Electric's position as a global supplier of fuel pumping equipment. Healy Systems proprietary equipment and technology provide a cost-effective means for addressing one of the most significant global environmental concernsgasoline vapor emissions to the atmosphere. They also address a serious economic issue for our customersgasoline losses due to evaporation, said Scott Trumbull, chairman and CEO of Franklin Electric. In addition, the Healy Systems product line is complementary to Franklin's existing fuel management product offering and will present cross selling opportunities.
James W. Healy, president of Healy Systems, said, The combination of Healy's gasoline vapor recovery equipment line with Franklin Electric's existing fuel management products should have a strong positive effect on sales.
CLB Partners LLC served as exclusive financial advisor to Healy Systems in this transaction.
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