Franklin Electric to buy Challenge Pumps in $181M deal, eyes EPS accretion in 2027
Franklin Electric (FELE) to acquire Challenge Pumps Holdings for ~$181M in cash, plus up to $14M in contingent consideration tied to future revenue performance, expanding its underground mining dewatering and industrial water-management business.
Perth-based Challenge Pumps manufactures dewatering pumps and systems for underground mining. It generated $52M in FY2026 revenue and $18M in adjusted EBITDA, a margin of ~35%. More than 55% of its revenue over the past three years came from aftermarket parts and services.
The deal is expected to close in 2026, subject to customary conditions and completion of the target’s audit. Challenge Pumps will join Franklin Electric’s Water Systems segment, with post-deal net leverage expected at 1.8x. The acquisition will be funded through cash on hand and existing credit facilities.
Franklin Electric (FELE) expects the acquisition to be accretive to adjusted EPS in 2027 and sees revenue growth and cost synergy opportunities through its global commercial, operational, and supply chain capabilities.
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