Acquisition of leading light tower manufacturer positions Generac
as a global leader in mobile power equipment and accelerates
international expansion efforts
WAUKESHA, Wis.--(BUSINESS WIRE)--Jul. 25, 2013--
Generac Holdings Inc. (NYSE: GNRC), a leading designer and manufacturer
of generators and other engine powered products, announced today the
signing of a purchase agreement to acquire the equity of Tower Light Srl
and its wholly-owned subsidiaries from European private equity fund
Ambienta I, advised by Ambienta SGR, and a group of minority-share
Founded in 1996 and headquartered outside Milan, Italy, Tower Light is a
leading developer and supplier of mobile light towers throughout Europe,
the Middle East and Africa. Tower Light has experienced growth and built
a leading market position in the equipment rental markets by leveraging
their broad product offering and strong global distribution network in
over 50 countries. With approximately 100 employees, Tower Light’s net
sales for year ended December 31, 2012 were approximately €37 million.
“Tower Light is a great strategic fit for Generac’s business, providing
an expanded product offering of light tower generators to support
additional geographic markets beyond those we serve today,” said Aaron
Jagdfeld, President and Chief Executive Officer of Generac. “Acquiring
Tower Light positions us as a global leader in light towers, allowing us
to participate in the growing rental market for these products outside
“This is a very exciting development for Tower Light which opens up many
new opportunities and allows us to continue to innovate and further
develop the Tower Light product range. We are pleased to join the
Generac family, and we look forward to our continued success as we work
together to execute on potential synergies and drive global growth for
mobile power products,” said Andrea Fontanella, Founder and Managing
Director of Tower Light Srl.
Following the close of the transaction, Tower Light’s management team
will continue to lead the company and the Tower Light brand name will
join Generac’s brands, including Magnum and Ottomotores, in serving
global power generation and associated markets. It is expected that the
transaction will close in the third quarter of 2013, pending standard
closing conditions. The purchase price of the acquisition was not
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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 Tower Light Srl
Tower Light Srl, founded in 1996 and based at Villanova d’Ardenghi (PV),
is the European leader in the production of lighting towers for
construction and other applications. Through continuous product
development and a broad distribution network, Tower Light Srl has become
a leading supplier to construction and equipment rental companies,
providing mobile power equipment that meets the specific needs of
geographic markets across the world.
About Ambienta, Sgr
Ambienta SGR is the largest European private equity fund focused on the
growth environmental sector. Ambienta I Fund, with commitments of €217.5
million, has to date completed 10 investments in the areas of energy
efficiency, pollution reduction, renewables, recycling, and primary
resource management. Ambienta contributes actively to the development of
its portfolio companies, offering industrial and managerial expertise
and broad industrial relations. Learn more about Ambienta at www.ambientasgr.com.
Certain statements contained in this news release, as well as other
information provided from time to time by Generac Holdings Inc. 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 the acquisitions of the Ottomotores and Tower Light
businesses or other acquisitions will not be realized, or will not be
realized within the expected time period;
the risk that the Ottomotores and Tower Light businesses or other
acquisitions that we make 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
Director – Finance and Investor Relations