Tecumseh Sells Pump Subsidiary

Posted on March 20, 2006

Tecumseh Products said it has signed an agreement to sell its subsidiary, Little Giant Pump Co. to Franklin Electric Co., Inc. Little Giant represents approximately 90% of the Tecumseh’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. Tecumseh said it will use the proceeds to reduce overall debt levels.

Little Giant has been successful during Tecumseh's ownership, having grown from $10 million in sales to over $100 million. Kent Herrick, Tecumseh;s vice president of Global Business Development said that “the sale is consistent with the company's strategy to focus on products that are specifically engineered for OEM, wholesale and distribution markets."