Tecumseh Products ( TECUB) agreed to sell its Little Giant Pump unit to Franklin Electric ( FELE) 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.

This story was created through a joint venture between TheStreet.com and IRIS.

More from Stocks

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat