Acquisition provides an expanded portfolio of professional grade,
engine-powered products primarily sold under the DR® Power Equipment
brand name
WAUKESHA, Wis.--(BUSINESS WIRE)--Aug. 3, 2015--
Generac Holdings Inc. (NYSE: GNRC) (“Generac”), a leading designer and
manufacturer of power generation equipment and other engine powered
products, announced today the acquisition of Country Home Products, Inc
and its subsidiaries (collectively, Country Home Products), effective
August 1, 2015.
Founded in 1985 and headquartered in Vergennes, Vermont, Country Home
Products is a leading manufacturer of high-quality, innovative,
professional-grade engine-powered equipment used in a wide variety of
property maintenance applications. Primarily sold in North America under
the DR® and Neuton® brand names, Country Home Products employs over 200
people across its headquarters and two other facilities located in
Vermont.
“Acquiring Country Home Products is a great strategic fit for Generac’s
business and is perfectly aligned with our Powering Ahead strategic
objective of diversifying our end markets with new products and
services,” said Aaron Jagdfeld, President and Chief Executive Officer.
“This acquisition dramatically expands our chore-related products
line-up and will provide additional scale to our residential
engine-powered tools platform. We believe this transaction should create
meaningful cross-selling opportunities with our existing distribution
and should also generate certain cost synergies as we leverage our
existing global sourcing and manufacturing capabilities.”
“This is a very exciting transaction for Country Home Products,” said
Joe Perrotto, President of Country Home Products. “It will open up even
larger markets for sales of DR®, Neuton® and Generac® products both in
the U.S. and globally, and will also create meaningful opportunities to
improve our product costs and ultimately the value we bring to our
customers. We are pleased to join the Generac family and look forward to
our continued success as we work together to drive growth and bring
exceptional products, service, and value to the markets we serve.”
Country Home Products’ management team will continue to lead the
business going forward, and the DR® and Neuton® brand names will join
Generac’s family of brands in serving a broad, global customer base. The
purchase price and other terms of the acquisition were not announced.
Additional comments regarding this acquisition will be provided when
Generac releases its second quarter 2015 financial results and holds a
conference call on Thursday, August 6, 2015.
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 Country Home Products
Country Home Products, founded in 1985 and based in Vergennes, Vermont,
is a leading developer, manufacturer and marketer of innovative,
professional-grade engine-powered equipment used in a wide variety of
property maintenance applications sold under the DR® and Neuton® brands.
The company’s broad product line of engine-powered tools are primarily
sold throughout North America and include field & brush mowers, chippers
& shredders, trimmers, leaf vacuums, stump grinders, log splitters and
battery-powered lawn mowers. For more information, go to www.chp.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;
• 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/20150803005707/en/
Source: Generac Holdings Inc.
Generac Holdings Inc.
Michael W. Harris, (262) 544-4811 x2675
Vice
President – Finance and Investor Relations
Michael.Harris@Generac.com