News
Franklin Electric Acquires U.S. Groundwater Distribution Company
Fort Wayne, IN – January 2, 2019 - Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that it has acquired Milan Supply Company of Mt. Pleasant, Michigan for $5.9 million. Milan is a professional groundwater distributor operating six locations in the State of Michigan. Milan has approximately $22 million of consolidated annual sales.
DeLancey Davis, President of Headwater Companies, the wholly owned Distribution Segment of Franklin Electric, commented:
“We are pleased to add Milan Supply to the Headwater family. The team at Milan has served the pump industry and related water resource markets for over 50 years and has an outstanding reputation with their customers for technical capability and service. The acquisition of Milan adds to Headwater’s commitment to the important Michigan groundwater market and further fulfills our objective of being the leading source in groundwater systems distribution in the U.S.”
Headwater Companies, LLC is a collection of leading groundwater distributors. This collective and vested group ensures a focused groundwater distribution organization that delivers quality products and leading brands to the industry, providing contractors with the availability and service they demand to meet their application challenges.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
2M Celebrates 40 Years of “Legendary Service”
BILLINGS, Mont., June 06, 2018 (GLOBE NEWSWIRE) -- 2M Company, Inc., wholesale distributor to the water systems, irrigation, treatment, retention, and waste water industries, is celebrating its 40th year in business. It was 1978 when founders Bill Mills and Chester Majors (the two “M”s behind the name), along with 40-year-veteran Dan Ruff, launched the company in Billings, Mont. with a primary focus on delivering exemplary customer service.
The first to open its doors on Saturdays, extend summer hours, offer customer trip promotions, and provide emergency service “24/7” – even on holidays – 2M steadily grew from a small, local operation to a company with 15 locations across eight states in the Rocky Mountains, Southwest, and Pacific Northwest.
“It was the company’s commitment to providing the best inventory, the most knowledgeable staff, and the most attentive customer service that propelled 2M from the reputable local guys to leading industry players,” said H.A. “Buzz” Mills, President of 2M and son of founder Bill Mills.
2M’s leading Inventory Container Program, its multiple turbine build facilities, and its mission to provide what they coined “legendary service” at every customer touchpoint, not only gained the company a loyal following, but also caught the attention of Headwater Companies, a collective group of leading groundwater distributors owned by Franklin Electric. 2M joined the publicly traded company in 2017.
“As part of the Headwater Companies family, we’ve been able to extend our reach, increase our buying power, and take even better care of our customers,” said Mills. “Our partnership with Headwater Companies will only lead to greater success for 2M and our customers as we continue to expand into new markets throughout the West in the upcoming years.”
Franklin Electric Acquires U.S. Groundwater Distribution Company
Fort Wayne, IN –January 3, 2018 - Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that it has acquired Valley Farms Supply, Inc. of Lansing, Michigan for $9.0 million. Valley Farms is a professional groundwater distributor operating three locations in the State of Michigan and one in the State of Indiana. Valley Farms has approximately $28.0 million of consolidated annual sales.
DeLancey Davis, President of Headwater Companies, the wholly owned Distribution Segment of Franklin Electric, commented:
“We are pleased to add Valley Farms to the Headwater family. The team at Valley Farms has built the largest groundwater distribution entity in Michigan by providing contractors with outstanding service and support. Valley Farms gives Headwater a leading market position in the important Michigan groundwater market and further fulfills our objective of being the leading source in groundwater systems distribution in the U.S.”
Headwater Companies, LLC is a collection of leading groundwater distributors. This collective and vested group ensures a focused groundwater distribution organization that delivers quality products and leading brands to the industry, providing contractors with the availability and service they demand to meet their application challenges.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
New Name, Same Mission for Headwater Wholesale
2MDSI, a leading groundwater distributor located in the upper Midwest, to be rebranded as Headwater Wholesale
MADISON, WI - June 1, 2017 - Recently formed Headwater Companies, a collective group of leading groundwater distributors, today announced that 2MDSI, LLC, a joint venture between 2M and DSI, is now operating as Headwater Wholesale with headquarters in Madison, Wis. Formed to better serve the central region of the United States, Headwater Wholesale specializes in water well, irrigation, drilling materials and equipment, and environment and waste water in Minnesota, Wisconsin, the Upper Peninsula of Michigan and Eastern North and South Dakotas.
Well known for its industry-leading Container Program, Headwater Wholesale has grown from two sites to a four-branch operation with locations in Green Bay, Watertown, and Menomonie, Wis. and St. Cloud, Minn. Plans for future locations are in the works.
This is not the first name change for the wholesale distributor. "Since the initial acquisition of A.I. McDermott by DSI and the subsequent joint venture as 2MDSI, we have established a strong reputation in the market as best in class in service and product availability," said Brian Schramm, General Manager of Headwater Wholesale. "We look forward to expanding our reputation for excellence in people, products and programs for our customers under the Headwater Wholesale banner."
Schramm hopes customers will remain more focused on the service Headwater Wholesale provides adding, "While our name may have changed again, our high standards of quality and support remain untouched. We will continue to meet and exceed the expectations of contractors in the Midwest."
For more information, visit headwaterwholesale.com and headwaterco.com.
FRANKLIN ELECTRIC ACQUIRES U.S. GROUNDWATER DISTRIBUTION COMPANIES
Fort Wayne, IN – April 10, 2017 - Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that it has reached agreement to acquire controlling interests in three distributors in the U.S. professional groundwater market. Franklin Electric will acquire 2M Company Inc. of Billings, Montana; Western Hydro Holding Corporation of Hayward, California and Drillers Service, Inc. (DSI) of Hickory, North Carolina for approximately $89 million in the aggregate, which includes assumed debt. The 2M and Western Hydro transactions have closed and the Company expects the DSI acquisition to close before the end of the second quarter 2017.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“The specialized groundwater distribution channel in the U.S. through which we sell our products is an important element in the ultimate sale, support and specification to the installing contractors. Working in partnership with our distributors, Franklin Electric has developed a broad array of products and systems solutions that will only grow as regulatory and efficiency demands increase in North America.
Over the last several years, Franklin Electric has worked closely with the management of these three companies and the leadership of other strategic distribution partners. These relationships have provided us with insight into and appreciation for the value proposition offered by water systems distribution. 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. Our new distribution entity, with a national footprint of sixty locations and nearly 500 employees, will be the largest in the industry.”
Franklin Electric will operate the acquired distributors in an entity named Headwater Companies, LLC. The Company has named DeLancey W. Davis, a twenty-five-year industry veteran including the last eleven as an executive officer of Franklin Electric, as President of Headwater Companies, LLC. Mr. Davis will have overall leadership responsibility for the new Headwater Distribution segment and will begin to immediately integrate the three acquisitions into a single operating unit.
For financial reporting purposes, as of the second quarter, all the acquired entities will be wholly owned subsidiaries and included in the Company’s consolidated results. The Headwater Distribution segment will be reported separately from the existing Water Systems segment, which will continue to report the results of the global water manufacturing business. The new segment is expected to have operating income margins of approximately 4 to 6 percent and pre-tax return on capital measures consistent with historical Franklin Electric returns after certain integration actions are complete.
The new segment will have approximately $275 million of consolidated annual sales and is expected to be neutral to the 2017 adjusted earnings per share guidance of $1.77 to $1.87 the Company has provided.
The earnings from the acquired companies are expected to add twelve to fourteen cents to Franklin Electric’s 2018 adjusted earnings per share.
Mr. Sengstack added;
“By forward integrating into distribution in the U.S., Franklin Electric is taking a logical next step in our evolution as a groundwater pumping systems company. 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.”
A conference call to review this announcement will commence at 9:00 am EDT on Tuesday, April 11, 2017. The webcast will be available in a listen only mode by going to:
http://edge.media-server.com/m/p/bmtk5gu5
If you intend to ask questions during the call, please dial in using (877) 643-7158 for domestic calls and (914) 495-8565 for international calls. The conference ID is: 3677145
A replay of the conference call will be available Tuesday, April 11, 2017 at 1:00 pm EDT through 1:00 pm EDT on Tuesday, April 18, 2017, by dialing (855) 859-2056 for domestic calls and (404) 537-3406 for international calls. The replay passcode is: 3677145.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
