Franklin Electric to acquire Barnes de Colombia

Published 14/02/2025, 14:06
Franklin Electric to acquire Barnes de Colombia

FORT WAYNE, Ind. - Franklin Electric Co., Inc. (NASDAQ: NASDAQ:FELE), a global leader in water and energy movement systems with a market capitalization of $4.61 billion, has announced the signing of a definitive agreement to acquire Barnes de Colombia S.A., a prominent industrial and commercial pump manufacturer and distributor based in Cota, Cundinamarca, Colombia. According to InvestingPro analysis, Franklin Electric is currently trading near its Fair Value, demonstrating the company's stable market position. The transaction, which is subject to customary closing conditions, including Colombian antitrust clearance, is expected to be finalized on or around March 1, 2025.

This strategic move is set to bolster Franklin Electric's growth and diversification in Latin America, enhancing the company's product offerings and market reach. The company's strong financial position, with a healthy current ratio of 2.4 and moderate debt levels, positions it well for this expansion. Barnes de Colombia, known as well under the WDM brand in certain markets including the United States, brings to Franklin Electric two manufacturing facilities, over eight stocking locations in Colombia, and assembly facilities across Mexico, Brazil, and Argentina. InvestingPro data reveals that Franklin Electric has maintained dividend payments for 33 consecutive years, highlighting its financial stability and commitment to shareholder returns. Additionally, Barnes de Colombia has local warehouses in Guatemala, Panama, Ecuador, Peru, and Chile.

Joe Ruzynski, CEO of Franklin Electric, expressed enthusiasm for the acquisition, stating, "This acquisition not only strengthens our presence in the high-growth Latin American markets but also enhances our ability to serve our customers with an expanded portfolio of innovative and high-quality products." He highlighted the expected contributions of Barnes de Colombia's approximately 400 team members to Franklin Electric's growth and success.

The acquisition is designed to support Franklin Electric's strategic objectives of product line diversification and supply chain resilience, capitalizing on Barnes de Colombia's extensive distribution network and customer relationships. Investment banking services for this acquisition were provided by Seale & Associates to Barnes de Colombia and its owners, while legal counsel was provided by Garrigues (Colombia and Mexico) to Franklin Electric, and Brigard Urrutia to Barnes de Colombia.

Franklin Electric, recognized for its technical leadership and service, has received accolades for corporate responsibility and sustainability, including listings in Newsweek's America's Most Responsible Companies, Most Trustworthy Companies, and Greenest Companies; Best Places to Work in Indiana; and America's Climate Leaders by USA Today. The company's solid financial health is reflected in its GOOD overall rating from InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Report, available for over 1,400 US stocks.

This news is based on a press release statement.

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