Acquisition creates a major player in the global power generation
market
WAUKESHA, Wis.--(BUSINESS WIRE)--Feb. 15, 2016--
Generac Holdings Inc. (NYSE:GNRC) (“Generac”), a leading designer and
manufacturer of power generation equipment and other engine powered
products, announced today the signing of an agreement to acquire a
majority share of PR Industrial S.r.l and its subsidiaries, owner of the
Pramac® brand (collectively Pramac). The transaction is expected to
close prior to the end of the first quarter of 2016.
Founded in 1966 by the Campinoti family and headquartered in Siena,
Italy, Pramac is a leading manufacturer of stationary and mobile
generators for a variety of commercial and industrial applications
primarily sold under the Pramac® brand, as well as portable generators
used for numerous residential, light construction and recreational
purposes. The company also has a line of material handling equipment
sold under the Lifter® brand. Selling into over 150 countries through a
broad distribution network, Pramac employs over 600 people across its
four manufacturing plants and 14 commercial branches worldwide.
“Acquiring a majority share of Pramac will be a great strategic fit for
Generac as we build out our power generation business around the globe,”
said Aaron Jagdfeld, President and Chief Executive Officer. “This
acquisition will dramatically increase our global presence by adding
product, manufacturing and distribution capabilities that serve local
markets around the world. In addition to creating global opportunities
for our existing product lines, this transaction should also generate
meaningful cost synergies as we leverage our combined sourcing and
manufacturing capabilities across the world.”
“This is a very exciting transaction for Pramac, as the combination of
both companies creates a major player in the global power generation
market,” said Paolo Campinoti, Chief Executive Officer of Pramac. “We
are pleased to join the Generac family and look forward to continued
success as we work together to execute on potential synergies, while
driving global growth for our products.” Paolo Campinoti will remain a
key shareholder of Pramac and, along with the company’s management team,
will continue to lead the Pramac business as CEO going forward.
About Generac
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, oil & gas, and construction markets, Generac's
power products are available globally through a broad network of
independent dealers, distributors, retailers, wholesalers and equipment
rental companies, as well as sold direct to certain end user customers.
About Pramac
Pramac, established in 1966 by the Campinoti family, produces and sells
power generation systems and material handling equipment primarily under
the Pramac® and Lifter® brands. The company, which is headquartered in
Siena, Italy, has a full range of stationary, mobile and portable power
generation equipment up to 3,360 kVA that are sold through a broad
distribution network across the world. For more information, go to www.Pramac.com.
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,"
“optimistic” 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:
-
frequency and duration of power outages impacting demand for Generac
products;
-
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
and foreign currency exchange 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 or recalls; 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 2014 Annual
Report on Form 10-K and in its periodic reports on Form 10-Q.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160215005101/en/
Source: Generac Holdings Inc.
Generac Holdings Inc.
Michael W. Harris, 262-544-4811 x2675
Vice
President – Finance
Michael.Harris@Generac.com
