Franklin Electric agrees to acquire Little Giant Pump Company

Franklin Electric Co., the world's largest manufacturer of submersible electric motors and a global supplier of water pumping systems and fuel pumping systems, announced Monday that it has entered into a definitive agreement to acquire Little Giant Pump Company in a stock purchase transaction. Little Giant, a wholly owned subsidiary of Tecumseh Products Company, is a leading worldwide provider of commercial and consumer water transfer solutions.

The purchase price of $121 million excludes associated tax benefits and transaction costs and is subject to certain adjustments at closing. After taking tax benefits into account, the purchase price is approximately one times Little Giant's 2005 fiscal year sales. Franklin Electric expects the transaction to be accretive to its earnings per share in the first year of ownership. It intends to fund the purchase with borrowings under its credit facility and cash on hand. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close shortly after such approval is obtained.

R. Scott Trumbull, chairman and chief executive officer of Franklin Electric, stated, "The acquisition of Little Giant Pump Company will solidify Franklin Electric's position as a global supplier of pumping equipment for residential and commercial markets. Little Giant's product lines - sump, sewage, effluent, condensate and industrial submersible pumps - will complement and broaden our overall pump offering and allow us to expand our customer base."