Significant expansion of industrial product offering to increase
Generac's addressable market
WAUKESHA, Wis.--(BUSINESS WIRE)--Oct. 7, 2013--
Generac Holdings Inc. (NYSE: GNRC) (the “Company” or “Generac”), a
leading designer and manufacturer of generators and other engine powered
products, announced today the signing of a purchase agreement with
Baldor Electric Company (“Baldor”), a wholly-owned subsidiary of ABB
Group, to acquire substantially all of the assets of Baldor’s generator
products division (“Baldor Generators”).
Located in Oshkosh, Wisconsin, Baldor Generators offers a complete line
of portable, mobile, standby and prime power generators ranging from 3kW
to 2.5MW throughout North America. For almost 50 years, Baldor
Generators and its predecessors have served the power generation market
with a comprehensive, reliable product offering and flexible operating
environment.
“Acquiring Baldor Generators is a great strategic fit for Generac’s
business, providing us immediate access to a larger industrial product
line to better support the North American and global power generation
markets,” said Aaron Jagdfeld, President and Chief Executive Officer of
Generac. “By offering additional power solutions up to 2.5MW, this
acquisition improves our competitive position in the marketplace by
increasing the addressable market that our distribution partners can
serve.”
Jagdfeld continued, “Investing in the Baldor Generator business
accelerates our organic efforts to increase our share of the commercial
and industrial power generation market while also adding significant
production and test capacity for future growth. With our enhanced scale
and focus, we believe we can execute on the meaningful revenue and cost
synergies that we have identified to date.”
Following the close of the transaction, the employees of Baldor
Generators will become employees of Generac and the Oshkosh, WI facility
will become part of Generac’s manufacturing footprint. Although the
Baldor brand name is not included past a transitionary period, Generac
will continue to support Baldor Generator’s existing customers and
distribution network going forward. The acquisition is expected to close
in the fourth quarter of 2013, pending standard closing conditions. The
terms of the transaction were not announced.
Generac company news is available
24 hours a day,
on-line at: http://www.generac.com.
About Generac (NYSE: GNRC)
Since 1959, Generac has been a leading designer and manufacturer of a
wide range of generators and other engine powered products. As a leader
in power equipment serving residential, light commercial, industrial and
construction markets, Generac's power products are available
internationally through a broad network of independent dealers,
retailers, wholesalers and equipment rental companies.
About Baldor Electric Company
Baldor Electric Company markets, designs and manufactures industrial
electric motors, mechanical power transmission products and drives.
Baldor, a member of the ABB Group, is headquartered in Fort Smith,
Arkansas.
Forward-looking Information
Certain statements contained in this news release, as well as other
information provided from time to time by Generac or its employees, may
contain forward looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those in the
forward looking statements. Forward-looking statements give Generac's
current expectations and projections relating to the Company's financial
condition, results of operations, plans, objectives, future performance
and business. You can identify forward-looking statements by the fact
that they do not relate strictly to historical or current facts. These
statements may include words such as "anticipate," "estimate," "expect,"
"forecast," "project," "plan," "intend," "believe," "confident," "may,"
"should," "can have," "likely," "future" and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future operating or financial performance or other events.
Any such forward looking statements are not guarantees of performance or
results, and involve risks, uncertainties (some of which are beyond the
Company's control) and assumptions. Although Generac believes any
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect Generac's actual
financial results and cause them to differ materially from those
anticipated in any forward-looking statements, including:
-
demand for Generac products;
-
frequency and duration of major power outages;
-
availability, cost and quality of raw materials and key components
used in producing Generac products;
-
the impact on our results of the substantial increases in our
outstanding indebtedness and related interest expense due to the
dividend recapitalization transactions completed in May 2012 and 2013;
-
the possibility that the expected synergies, efficiencies and cost
savings of our completed acquisitions will not be realized, or will
not be realized within the expected time period;
-
the risk that our completed acquisitions will not be integrated
successfully;
-
difficulties Generac may encounter as its business expands globally;
-
competitive factors in the industry in which Generac operates;
-
Generac's dependence on its distribution network;
-
Generac's ability to invest in, develop or adapt to changing
technologies and manufacturing techniques;
-
loss of key management and employees;
-
increase in product and other liability claims; and
-
changes in environmental, health and safety laws and regulations.
Should one or more of these risks or uncertainties materialize,
Generac's actual results may vary in material respects from those
projected in any forward-looking statements. A detailed discussion of
these and other factors that may affect future results is contained in
Generac's filings with the U.S. Securities and Exchange Commission.
Any forward-looking statement made by Generac in this press release
speaks only as of the date on which it is made. Generac undertakes no
obligation to update any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may be
required by law.
SOURCE: Generac Holdings Inc.
Source: Generac Holdings Inc.
Generac Holdings Inc.
York A. Ragen
Chief Financial Officer
(262)
506-6064
InvestorRelations@generac.com
or
Michael
W. Harris
Director – Finance and Investor Relations
(262)
544-4811 x2675
Michael.Harris@generac.com
