Water and fuel pumping systems provider Franklin Electric announced the acquisition of Puronics and its wholly owned subsidiaries. The latter provides residential and commercial water treatment products and services. Financial details of the transaction were not disclosed.
Franklin Electric’s (FELE) President, Global Water Systems Business, Don Kenney, said, “We have identified water treatment as a strategic adjacency to our leading ground water pumping position globally. We are pleased to add Puronics’ strong market presence, quality focus and customer-service oriented approach to our water treatment businesses.”
Kenney further added, “Puronics has a rich 70-year history as a leading provider of premium residential and commercial water treatment systems, and the acquisition will expand our channel, product, and geographic offerings in the United States.” (See Franklin Electric stock analysis on TipRanks)
Puronics operates 4 company owned service centers and serves about 133 independent water quality dealers. It has annual sales of about $24 million.
On March 22, D. A. Davidson analyst Matt Summerville reiterated a Hold rating on the stock and raised its price target to $75 (6.5% downside potential) from $70.
Summerville sees a “stronger” earnings scenario “likely unfolding” this year thanks to the company’s “solid” fundamentals in its higher-margin agriculture-facing business in North America.
The other analyst covering the stock, Robert W. Baird’s Michael Halloran has a Buy rating on the stock and did not assign a price target.
The two ratings combine to a Moderate Buy consensus rating with average analyst price target of $75. Shares have gained about 67.5% over the past year.
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