Franklin Electric has agreed to acquire Challenge Pumps, a Perth-based maker of underground mine dewatering pumps, for about A$259m (US$181m) in cash, the company said on 27 October 2026.
Why Franklin Electric Co., Inc. is buying Challenge Pumps Holdings Pty Ltd
Franklin Electric said the deal is a step in its strategy to build a broader, more resilient flow control company. Challenge Pumps will join its Water Systems segment and keep its brand, and the acquisition is expected to add to adjusted earnings per share in 2027.
“This acquisition represents another important step in our strategy to build a broader, more resilient flow control company.”
Deal terms and financing
Franklin will pay about A$259m in cash, subject to customary adjustments, plus contingent consideration of up to A$20m linked to revenue after closing. It will fund the deal from cash and borrowings under existing facilities and expects net leverage of about 1.8 times after completion.
Regulatory approvals and timing
Completion is expected in 2026, subject to Challenge Pumps completing its annual audit, third-party consents and customary conditions.
Market context
Challenge Pumps reported revenue of about A$73m and EBITDA of about A$26m for the year to June 2026, with parts and services accounting for more than 55% of revenue over the past three years. It recently completed a significant facility expansion. Franklin Electric closed its acquisition of Cat Pumps in September 2026.
