Acquisition expands portfolio of mobile power products and provides
increased access to the oil & gas market
WAUKESHA, Wis.--(BUSINESS WIRE)--Oct. 1, 2014--
Generac Holdings Inc. (NYSE: GNRC) (the “Company”), a leading designer
and manufacturer of power generation equipment and other engine powered
products, announced today the purchase of MAC, Inc. and its related
entities (“MAC”).
Established in 1983 and headquartered in Bismarck, ND with approximately
100 employees, MAC is a leading manufacturer of premium-grade commercial
and industrial mobile heaters within the U.S. and Canada. MAC primarily
serves the oil & gas and construction markets, as well as other
industrial sectors through national equipment rental companies and
independent dealers. MAC’s line of flameless, indirect-fired and
hydronic surface heaters are recognized to be some of the safest, most
reliable, and efficient machines in the market.
“The acquisition of MAC is an exciting development for Generac as it
further expands our growing mobile products platform by adding a strong
brand of industrial heaters and increases our access to the projected
long term up-cycle in the oil & gas market,” said Aaron Jagdfeld,
President and Chief Executive Officer. “In addition to gaining immediate
access to a broad lineup of mobile heating equipment that is essential
to colder climate oil & gas and construction sites, this acquisition
creates cross-selling opportunities with our existing mobile products
distribution.”
“We’ve worked hard to build MAC into a great company and we believe that
partnering with Generac best positions our organization for continued
growth,” said Michael Seifert, President and CEO of MAC, Inc. “We are
excited to be joining the Generac team and we see many synergies for
both companies as a result of this transaction.”
The MAC management team will continue to lead the company and the MAC
product brand will be retained and will join Generac's family of brands.
The purchase agreements were executed and the transaction simultaneously
closed on October 1, 2014. The purchase price and terms of the
transaction were not announced.
About Generac (NYSE: GNRC)
Since 1959, Generac has been a leading designer and manufacturer of a
wide range of power generation equipment 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 globally through a broad network of independent
dealers, retailers, wholesalers and equipment rental companies, as well
as sold direct to certain end user customers.
About MAC, Inc.
MAC, Inc., established in 1983 and based in Bismarck, ND, is a leading
manufacturer and supplier of mobile air heaters used in commercial and
industrial applications, which are engineered to provide reliable and
efficient heat within the harshest cold weather environments. MAC’s
products are available through national equipment rental companies and
independent dealers, and they provide parts, service, and manufacturing
services to support its customers’ operations.
Forward-looking Information
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 power outages;
-
availability, cost and quality of raw materials and key components
used in producing Generac products;
-
the impact on our results of possible fluctuations in interest rates;
-
the possibility that the expected synergies, efficiencies and cost
savings of our acquisitions will not be realized, or will not be
realized within the expected time period;
-
the risk that our acquisitions will not be integrated successfully;
-
difficulties Generac may encounter as its business expands globally;
-
competitive factors in the industry in which Generac operates;
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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
(“SEC”), particularly in the Risk Factors section of our 2013 Annual
Report on Form 10K and in its periodic reports on Form 10Q.
Stockholders, potential investors and other readers should consider
these factors carefully in evaluating the forward-looking statements.
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.
Michael W. Harris
Vice President –
Finance and Investor Relations
(262) 544-4811 x2675
Michael.Harris@Generac.com
