The 2M and Western Hydro transactions have already been completed and the DSI acquisition is expected to close before the end of the second quarter of 2017.
Franklin Electric will operate the acquired distributors in a new entity named Headwater Companies LLC.
DeLancey Davis, a 25-year industry veteran including the last 11 as an executive officer of Franklin Electric, will serve as president of Headwater Companies. Davis will have overall leadership responsibility for the new Headwater Distribution segment and will integrate the three acquisitions into a single operating unit.
The new Headwater Distribution segment will have consolidated annual sales of approximately US$275 million, a national footprint of 60 locations and nearly 500 employees.
“The specialized groundwater distribution channel in the US through which we sell our products is an important element in the ultimate sale, support and specification to the installing contractors,” said Gregg Sengstack, Franklin Electric’s chairman and CEO. “By acquiring Western Hydro, 2M and DSI, including the stand-alone 2M/DSI joint venture, Franklin Electric is forward integrating into this channel with four strong, customer focused organizations competing in the market, increasing our commitment to the entire channel and the installing contractor base.”
“By forward integrating into distribution in the US, Franklin Electric is taking a logical next step in our evolution as a groundwater pumping systems company," added Sengstack. "This action places Franklin Electric shoulder to shoulder with the key decision makers in this end market – distributors and the installing contractors. The Headwater companies will continue to operate as full line wholesale distributors with a focus on total water systems support, including products from all industry manufacturers. Headwater will maintain a laser focus on supporting the professional installing contractor.”
