agreed to sell its Little Giant Pump unit to
for $121 million.
After taking tax benefits into account, the purchase price is one times Little Giant's 2005 fiscal year sales, Franklin Electric said, adding that it expects the transaction to be accretive to its earnings per share in the first year of ownership.
Tecumseh will use proceeds to cut debt. Little Giant represents about 90% of the company's pump business segment, it said.
"Little Giant has been highly successful during Tecumseh Products Company's ownership having grown from $10 million in sales to over $100 million," said CEO Todd Herrick. "As the pump industry consolidates, the combination with Franklin Electric will provide additional opportunities for the operation to grow and flourish."
On Monday, Franklin rose 73 cents to $48.38 and Tecumseh rose 95 cents to $22.74.
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