Franklin Electric Co. has completed the
acquisition of 100 percent of the outstanding stock of Cerus Industrial Inc.,
based in Hillsboro, Ore. 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. The 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.
Scott Trumbull, Franklin chairman and
chief executive officer, comments:
“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 ground water 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.”
Franklin Electric Acquires Cerus Industrial Inc.
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