Why This Matters to Distributors: Franklin Electric plans to use its international distribution network and existing channel relationships to expand Cat Pumps, adding high-pressure pumping products and a recurring aftermarket parts business to its industrial portfolio.
Franklin Electric is expanding its industrial distribution platform with the $350 million acquisition of Cat Pumps Corp., adding a high-pressure pump manufacturer that it plans to grow through its existing distribution network.
Franklin said it will use its international distribution network to expand Cat Pumps in select industrial and infrastructure markets outside North America. The deal also gives Franklin a larger installed equipment base that generates recurring sales of replacement parts and accessories.
The acquisition closed Sept. 4 and was announced Sept. 8. Franklin paid $350 million in cash and could pay an additional $50 million in Franklin Electric stock based on Cat Pumps’ future performance.
Minneapolis-based Cat Pumps manufactures high-pressure plunger and piston pumps for commercial and industrial applications. Its products are used in industrial cleaning, hydro excavation, reverse osmosis and water treatment, vehicle cleaning, energy, specialty vehicles and water misting.
Cat Pumps generated about $115 million in revenue and $45 million in adjusted earnings before interest, taxes, depreciation and amortization in 2025, an adjusted EBITDA margin of about 39%. The company also generates a high proportion of its revenue from recurring aftermarket parts and accessories.
That aftermarket business gives Franklin and its distribution channels sales opportunities beyond the initial equipment purchase as customers replace parts and accessories across Cat Pumps’ installed base.
Franklin also sees an opportunity to expand the manufacturer’s reach through its existing channels. CEO Joe Ruzynski said Franklin intends to bring its market development capabilities, systems expertise and “channel strength” to Cat Pumps to accelerate growth in existing and adjacent applications.
The acquisition expands Franklin’s addressable market by more than $1 billion and strengthens its position in commercial and industrial flow control, according to the company.
“This acquisition accelerates our strategy to build a broader, more resilient flow control company,” Ruzynski said. He cited Cat Pumps’ brand, technology, and industrial expertise as well as opportunities to combine those assets with Franklin’s commercial capabilities and global footprint.
Cat Pumps will continue operating under its existing brand and will be reported as part of Franklin Electric’s Energy Systems segment. Franklin financed the acquisition with available cash and borrowings under its existing credit facilities.
Franklin expects the acquisition to increase adjusted earnings per share in 2027. The company expects its net leverage ratio to be about 1.5 times following the transaction.
For distributors, the deal pairs Franklin’s channel reach with Cat Pumps’ specialized industrial products and recurring aftermarket business. Franklin’s stated plan to expand Cat Pumps through its international distribution network could broaden the manufacturer’s geographic reach while giving existing channel partners access to additional industrial and infrastructure applications.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
