| USA. Tecumseh Products enters into agreement to sell subsidiary |
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| Tuesday, 21 March 2006 | |
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Company news: Tecumseh Products has announced that it has signed an agreement to sell its subsidiary, Little Giant Pump Company, to Franklin Electric Co., Inc. Little Giant Pump Company represents approximately 90% of the Company's Pump business segment. The sale is subject to regulatory approval, and closing is expected to occur shortly after such approval is obtained. The purchase price is $121 million, subject to certain adjustments at closing. The Company intends to utilize the proceeds to reduce overall debt levels. "Little Giant has been highly successful during Tecumseh Products Company's ownership having grown from $10 million in sales to over $100 million. As the pump industry consolidates, the combination with Franklin Electric will provide additional opportunities for the operation to grow and flourish. While we are sorry to part company with our friends at Little Giant Pump Company, we know this transaction is beneficial to all parties involved," said Todd Herrick, CEO, Tecumseh Products Company. "The sale is consistent with the Company's strategy to focus on products that are specifically engineered for OEM, wholesale and distribution markets," added Kent Herrick, Vice President of Global Business Development. |
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| Last Updated ( Tuesday, 21 March 2006 ) |
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