Franklin Electric Co. Inc. announced that it has acquired New Aqua LLC and its wholly owned subsidiaries, headquartered in Indianapolis, Indiana in an all-cash transaction valued at $150 million, subject to customary adjustments. The transaction is expected to be accretive to earnings per share (EPS) in 2021 in the range of $0.04 to $0.06 per share. As a result, the company has revised its full year 2021 earnings per share before restructuring expenses guidance to be in the range from $2.85 to $3.05.
New Aqua is a market leading water treatment business with more than 60 years of proven market success driven by more than 230 employees and 590 independent water quality dealers within the United States. The business currently operates under the brand names Aqua Systems and Hellenbrand to manufacture and provide services for a complete line of residential and commercial water treatment and drinking water equipment. New Aqua’s consolidated annual sales in 2020 were approximately $68 million, with EBITDA (a) margins of about 17 percent.
“With this acquisition, Franklin Electric solidifies itself as a leader within the residential and light commercial water treatment space, focused on the wholesale and water quality dealer channels. We look forward to working with our suppliers, wholesale distribution partners and water quality dealers to offer high quality products and services, while also expanding Franklin Electric’s product offerings and reach as a provider of water systems solutions,” said Gregg Sengstack, Chairperson and Chief Executive Officer of Franklin Electric.
Don Kenney, President of Franklin Electric’s Water Systems segment, said, “We are continuing to invest in prominent water treatment assets as a strategic adjacency to our leading ground water pumping position across the globe. We are pleased to add Aqua Systems’ strong brand to our water treatment businesses, which now operate under the Aqua Systems, Hellenbrand, Sterling, Avid, Puronics, and Waterite brands. Aqua Systems and Hellenbrand both have rich histories as leading providers of premium residential and commercial water treatment systems, and the acquisition will expand our channel, product, and geographic offerings in the United States. I would like to welcome Aqua Systems and Hellenbrand to the Franklin Electric family.”
John Ackerman, former majority owner of Aqua Systems, will continue to serve as an advisor to Franklin Electric during the transition. The current management team of Aqua Systems, including its Chief Executive Officer, Don Line, will remain with the company.