Franklin Electric acquires majority stake in Pioneer Pump HoldingsMarch 12, 2012
Franklin Electric recently announced that it completed its acquisition of a majority stake of Pioneer Pump Holdings Inc., the holding company for Pioneer Pump Inc. in Canby, Oregon and Pioneer Pump Limited in Rattlesden, England. Pioneer manufactures centrifugal pumps used for dewatering in oil and gas, municipal, construction and mining applications.
The holding company's 2011 sales were about $70 million. The recent transaction puts Franklin Eletric's equity interest in PPH at 70 percent, according to a company news release. Franklin will purchase the remaining minority shares of PPH in the first quarter of 2015. The company's move to acquire the company started in 2005, when Franklin purchased a 35 percent equity interest in PPH.
"Pioneer has grown rapidly and become one of the world's leading manufacturers of mobile pumping systems over the past six years because of the superior performance of their products, the strength of their distribution network with pump rental companies," said Scott Trumbull, Franklin's chairman and chief executive.
The acquisition is part of Franklin's strategy to expand its sales of packaged systems products, which offer an opportunity to generate higher revenue per installation, Trumbull said. PPH's presence in the oil and gas market also complements Franklin's initiative to introduce submersible pump systems to the industry.