Horsburgh & Scott Acquires Franklin Machine & Gear
Transaction overview
On April 14, 2026, Horsburgh & Scott (H&S), a Cleveland-based provider of industrial gear and gearbox manufacturing and repair services, acquired Franklin Machine & Gear, a Houston-based company specializing in precision machining and gear manufacturing. The deal was for an undisclosed value but resulted in a full acquisition of Franklin's operations by Horsburgh & Scott. Both companies have been active players in the industrial goods sector with extensive experience serving heavy industry clients.
Deal structure and financing
The transaction details regarding equity, debt split, and specific lead banks remain undisclosed as of the announcement date. Given that this is a private equity-backed acquisition conducted through GenNx360 Capital Partners, it likely involved leveraged buyout financing typical for middle-market deals in the industrial sector. The exact leverage metrics are not available; however, such transactions often see debt levels around 5 to 7 times earnings before interest, taxes, depreciation, and amortization (EBITDA). There is no information on whether the seller retained a stake or specific lock-up terms were agreed upon between H&S and Franklin's co-owners. Additionally, there are no mentions of IPO plans or other exit strategies that would typically follow such an acquisition.
Strategic context
The acquisition provides Horsburgh & Scott with additional precision machining capabilities as well as expanded geographic reach into the Gulf Coast region of the United States. This strategic move aims to enhance H&S's existing portfolio of services and manufacturing expertise by incorporating Franklin’s strengths in CNC turning, milling, gearbox rebuilding, and repair operations. For Franklin Machine & Gear, divestiture aligns with the company's desire to leverage a larger platform for growth while maintaining its current leadership team under Horsburgh & Scott’s umbrella.
Regulatory path
Given that both companies are based in the United States and operate within the industrial goods sector, antitrust authorities such as the Federal Trade Commission (FTC) and the Department of Justice (DOJ) would likely be involved in reviewing the acquisition. There is no information about whether any remedies were required or if Hart-Scott-Rodino (HSR) Act filings have been made for this transaction. Since deal values and specific regulatory actions are not disclosed, it remains unclear whether additional approvals from other jurisdictions might be necessary based on cross-border operations or market presence.