Franklin Electric agrees to buy Challenge Pumps for $181 million

Franklin Electric has signed a definitive agreement to acquire Challenge Pumps Holdings, a Perth-based provider of underground mine dewatering solutions, for about US$181 million in cash, subject to customary purchase price adjustments. The deal also includes contingent consideration of up to US$14 million tied to future revenue performance after closing.

Challenge Pumps designs and manufactures high-head dewatering pumps, engineered pumping systems and aftermarket solutions for underground mining operations. The company reported about US$52 million in revenue and US$18 million in EBITDA for the fiscal year ended June 2026, with more than 55% of revenue over the past three years from parts and services. Franklin Electric expects the deal to be accretive to Adjusted EPS in 2027.

The company said the acquisition expands its position in mineral extraction and industrial water management and that it plans to use its global commercial and supply-chain capabilities to grow the business. Franklin Electric expects to fund the deal with cash on hand and borrowings under existing credit facilities, and to report Challenge Pumps within its Water Systems segment. The deal is expected to close in 2026, after the target's audit process and customary closing conditions are satisfied.