EX-99.1
2
exhibit99_1.htm
EXHIBIT 99.1
Exhibit 99.1
Exhibit
99.1
For
Immediate Release
For
Further Information
Refer
to:
Thomas J. Strupp
260/824-2900
FRANKLIN
ELECTRIC ANNOUNCES THE ACQUISITION OF HEALY SYSTEMS, INC.
Bluffton,
Indiana - September 15, 2006
--
Franklin Electric Co., Inc. (NASDAQ: FELE), the world's largest manufacturer of
submersible electric motors and a global supplier of water pumping systems
and
fuel pumping systems announced today that it acquired Healy Systems, Inc.,
Hudson, New Hampshire ("Healy Systems") in a stock purchase transaction. Healy
Systems is a worldwide provider of Stage II Vapor Recovery Systems and
Components used primarily at gasoline stations to reduce gasoline vapor
emissions during vehicle refueling.
The
purchase price was approximately $35 million plus a percentage of Healy Systems
product sales over the next five years, and is subject to a post-closing
working
capital adjustment. The up front $35 million payment represents approximately
seven times trailing twelve month EBITDA (earnings before interest, taxes,
depreciation and amortization). Franklin Electric expects the transaction
to be
accretive to its earnings per share in the first year of ownership.
R.
Scott
Trumbull, Chairman and Chief Executive Officer of Franklin Electric, stated,
"The acquisition of Healy Systems will solidify Franklin Electric's position as
a global supplier of fuel pumping equipment. Healy Systems proprietary equipment
and technology provide a cost effective means for addressing one of the most
significant global environmental concerns - gasoline vapor emissions to the
atmosphere. They also address a serious economic issue for our
customers-gasoline losses due to evaporation. In addition, the Healy Systems
product line is complementary to Franklin's existing fuel management product
offering and will present cross selling opportunities".
James
W.
Healy, President of Healy Systems, stated, "We are fortunate to have been
acquired by a company with a corporate culture so well matched to our own.
In
addition, both Franklin Electric and Healy Systems are recognized world wide
for
the quality of the products they manufacture. The combination of Healy's
gasoline vapor recovery equipment line with Franklin Electric's existing
fuel
management products should have a strong positive effect on sales. I am looking
forward to working within Franklin Electric to achieve that goal".
CLB
Partners, LLC served as exclusive financial advisor to Healy Systems in this
transaction.
About
Franklin Electric
Franklin
Electric is a global leader in the production and marketing of water and
fuel
pumping systems and is a technical leader in submersible motors, drives,
controls, and monitoring devices.
"Safe
Harbor" Statement under the Private Securities Litigation Reform Act of 1995.
Any
forward looking statements contained herein involve risks and uncertainties,
including but not limited to, general economic and currency conditions, various
conditions specific to the Company's business and industry, market demand,
competitive factors, changes in distribution channels, supply constraints,
technology factors, litigation, government and regulatory actions, the Company's
accounting policies, future trends, and other risks which are detailed in
the
Company's Securities and Exchange Commission filings. These risks and
uncertainties may cause actual results to differ materially from those indicated
by the forward-looking statements.
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EX - 99 . 1 2 exhibit99 _ 1 . htm EXHIBIT 99 . 1 Exhibit 99 . 1 Exhibit 99 . 1 For Immediate Release For Further Information Refer to : Thomas J . Strupp 260 / 824 - 2900 FRANKLIN ELECTRIC ANNOUNCES THE ACQUISITION OF HEALY SYSTEMS , INC . Bluffton , Indiana - September 15 , 2006 -- Franklin Electric Co . , Inc . ( NASDAQ : FELE ) , the world 's largest manufacturer of submersible electric motors and a global supplier of water pumping systems and fuel pumping systems announced today that it acquired Healy Systems , Inc . , Hudson , New Hampshire ( " Healy Systems " ) in a stock purchase transaction . Healy Systems is a worldwide provider of Stage II Vapor Recovery Systems and Components used primarily at gasoline stations to reduce gasoline vapor emissions during vehicle refueling . The purchase price was approximately $ 35 million plus a percentage of Healy Systems product sales over the next five years , and is subject to a post - closing working capital adjustment . The up front $ 35 million payment represents approximately seven times trailing twelve month EBITDA ( earnings before interest , taxes , depreciation and amortization ) . Franklin Electric expects the transaction to be accretive to its earnings per share in the first year of ownership . R . Scott Trumbull , Chairman and Chief Executive Officer of Franklin Electric , stated , " The acquisition of Healy Systems will solidify Franklin Electric 's position as a global supplier of fuel pumping equipment . Healy Systems proprietary equipment and technology provide a cost effective means for addressing one of the most significant global environmental concerns - gasoline vapor emissions to the atmosphere . They also address a serious economic issue for our customers - gasoline losses due to evaporation . In addition , the Healy Systems product line is complementary to Franklin 's existing fuel management product offering and will present cross selling opportunities " . James W . Healy , President of Healy Systems , stated , " We are fortunate to have been acquired by a company with a corporate culture so well matched to our own . In addition , both Franklin Electric and Healy Systems are recognized world wide for the quality of the products they manufacture . The combination of Healy 's gasoline vapor recovery equipment line with Franklin Electric 's existing fuel management products should have a strong positive effect on sales . I am looking forward to working within Franklin Electric to achieve that goal " . CLB Partners , LLC served as exclusive financial advisor to Healy Systems in this transaction . About Franklin Electric Franklin Electric is a global leader in the production and marketing of water and fuel pumping systems and is a technical leader in submersible motors , drives , controls , and monitoring devices . " Safe Harbor " Statement under the Private Securities Litigation Reform Act of 1995 . Any forward looking statements contained herein involve risks and uncertainties , including but not limited to , general economic and currency conditions , various conditions specific to the Company 's business and industry , market demand , competitive factors , changes in distribution channels , supply constraints , technology factors , litigation , government and regulatory actions , the Company 's accounting policies , future trends , and other risks which are detailed in the Company 's Securities and Exchange Commission filings . These risks and uncertainties may cause actual results to differ materially from those indicated by the forward - looking statements . - 5 -