News

DSI Acquires New Lineshaft Turbine Facility in Pelham, GA

04/23/2021

DSI Pelham brings state-of-the-art assembly and repair capabilities to the Headwater Co. subsidiary.    

Littleton, CO - April 23, 2021 - DSI, a subsidiary of Colorado-based Headwater Companies, announces the acquisition of Atlantic Turbine Pump in Pelham, Ga., a lineshaft turbine facility specializing in vertical, horizontal, split case and submersible turbine pumps. The acquisition brings new manufacturing capabilities to DSI, a leader in the water industry since 1954, with plans to expand services into more municipal, commercial and large-scale agricultural applications.

“We are very excited about being able to extend new product capabilities to our existing customer base, as well as future customers, with the addition of this lineshaft turbine facility,” says Kevin Hancock, DSI President. “Building lineshaft turbines, along with the addition of in-depth employee experience, brings a new level of service and expertise to DSI.”

David Berggren of Atlantic Turbine will take on the role of branch manager for the new DSI location. DSI’s Brad Inman will be the regional manager and Matt Roberts will be the assistant branch manager.

The 15,000-square-foot assembly and repair facility will be known as DSI Pelham, located on three acres in the Pelham Industrial Park along Highway 19. The acquisition includes state-of-the-art machinery and tooling along with the transfer of five trained and certified machinists who collectively possess over 50 years’ experience in the water industry. DSI Pelham is DSI’s 19th location.

With this new location, DSI can build lineshaft turbines as well as repair all makes and models of pumps. In addition, DSI Pelham will serve as a major distributor for manufacturers across the country, housing an extensive inventory of new equipment and replacement parts for all product lines.

“This addition to our already extensive product inventory will help keep lead times down to a minimum, so that we can build and ship products as soon as possible to our customers around the country,” Hancock says. DSI Pelham will provide 24-hour emergency services seven days a week, 365 days a year.

GET INVOLVED and Help the Jubilee Raffle

01/29/2019

Buy your raffle ticket today.  Help prepare our future generations and keep the water flowing!

DSI Jubilee

DSI Wants You to Get Involved

01/07/2019

This year DSI is encouraging everyone to GET INVOLVED in providing clean, safe water to communities around the world.  DSI will donate to any qualified non-profit that our customers are directly involved in that provide communities located throughout the world with safe water wells.  To learn more and apply, click here.

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FRANKLIN ELECTRIC ACQUIRES U.S. GROUNDWATER DISTRIBUTION COMPANIES

04/11/2017

Fort Wayne, IN – April 10, 2017 - Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that it has reached agreement to acquire controlling interests in three distributors in the U.S. professional groundwater market. Franklin Electric will acquire 2M Company Inc. of Billings, Montana; Western Hydro Holding Corporation of Hayward, California and Drillers Service, Inc. (DSI) of Hickory, North Carolina for approximately $89 million in the aggregate, which includes assumed debt. The 2M and Western Hydro transactions have closed and the Company expects the DSI acquisition to close before the end of the second quarter 2017.

Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:

“The specialized groundwater distribution channel in the U.S. through which we sell our products is an important element in the ultimate sale, support and specification to the installing contractors. Working in partnership with our distributors, Franklin Electric has developed a broad array of products and systems solutions that will only grow as regulatory and efficiency demands increase in North America.

Over the last several years, Franklin Electric has worked closely with the management of these three companies and the leadership of other strategic distribution partners. These relationships have provided us with insight into and appreciation for the value proposition offered by water systems distribution. By acquiring Western Hydro, 2M and DSI, including the stand-alone 2M/DSI joint venture, Franklin Electric is forward integrating into this channel with four strong, customer focused organizations competing in the market, increasing our commitment to the entire channel and the installing contractor base. Our new distribution entity, with a national footprint of sixty locations and nearly 500 employees, will be the largest in the industry.”

Franklin Electric will operate the acquired distributors in an entity named Headwater Companies, LLC. The Company has named DeLancey W. Davis, a twenty-five-year industry veteran including the last eleven as an executive officer of Franklin Electric, as President of Headwater Companies, LLC. Mr. Davis will have overall leadership responsibility for the new Headwater Distribution segment and will begin to immediately integrate the three acquisitions into a single operating unit.

For financial reporting purposes, as of the second quarter, all the acquired entities will be wholly owned subsidiaries and included in the Company’s consolidated results. The Headwater Distribution segment will be reported separately from the existing Water Systems segment, which will continue to report the results of the global water manufacturing business. The new segment is expected to have operating income margins of approximately 4 to 6 percent and pre-tax return on capital measures consistent with historical Franklin Electric returns after certain integration actions are complete.

The new segment will have approximately $275 million of consolidated annual sales and is expected to be neutral to the 2017 adjusted earnings per share guidance of $1.77 to $1.87 the Company has provided.

The earnings from the acquired companies are expected to add twelve to fourteen cents to Franklin Electric’s 2018 adjusted earnings per share.

Mr. Sengstack added;

“By forward integrating into distribution in the U.S., Franklin Electric is taking a logical next step in our evolution as a groundwater pumping systems company. This action places Franklin Electric shoulder to shoulder with the key decision makers in this end market—distributors and the installing contractors. The Headwater companies will continue to operate as full line wholesale distributors with a focus on total water systems support, including products from all industry manufacturers. Headwater will maintain a laser focus on supporting the professional installing contractor.”

A conference call to review this announcement will commence at 9:00 am EDT on Tuesday, April 11, 2017.  The webcast will be available in a listen only mode by going to:

http://edge.media-server.com/m/p/bmtk5gu5

If you intend to ask questions during the call, please dial in using (877) 643-7158 for domestic calls and (914) 495-8565 for international calls.  The conference ID is: 3677145

A replay of the conference call will be available Tuesday, April 11, 2017 at 1:00 pm EDT through 1:00 pm EDT on Tuesday, April 18, 2017, by dialing (855) 859-2056 for domestic calls and (404) 537-3406 for international calls.  The replay passcode is: 3677145.

 

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.