Generac To Acquire Motortech
November 28 2016 - 08:30AM
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 the assets of Motortech Holding GmbH & Co. KG
(“Motortech”). The transaction, subject to regulatory
approval, is expected to close in the first quarter of
2017.
Founded in 1988 and headquartered in Celle, Germany, Motortech
is a leading manufacturer of gaseous-engine control systems and
accessories. The company’s gaseous-fuel sub-systems include
knock detection, mixers, throttles and various controls, which are
sold to European gas-engine manufacturers and to aftermarket
customers. Motortech employs over 250 people at its German
headquarters, manufacturing plant in Poland and sales offices
located in the U.S. and China.
“By combining resources and technology, Generac and Motortech
will lead the industry in innovative, spark-ignited engine
generator offerings,” said Patrick Forsythe, Executive Vice
President of Global Engineering at Generac. “This acquisition
allows Generac to expand its global market for gaseous products
beyond standby generators, and it aligns with our strategy of gas
power-generation leadership. It will significantly expand our
worldwide spark-ignited engine capabilities, complementing the
international growth Generac has experienced.”
“This is a very exciting transaction for Motortech,” said
Florian Virchow, CEO of Motortech. “The integration into
Generac will create broader product-application markets globally,
and is expected to bring 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 lead the gaseous-fueled power-generation
market around the world.”
The Virchow family and Motortech’s current management team will
continue to lead the Motortech business after the acquisition is
complete.
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 and industrial 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. For more information, go to
www.generac.com.
About Motortech
Motortech was founded by the Virchow family in 1988 in Celle,
near Hannover, Germany. The company started as a service and
distribution organization, specializing in engine-replacement parts
and stationary, gas-engine accessories. Today, the company has
evolved into a leading global manufacturer of efficient gaseous
engine systems for leading global OEMs. For more information, go to
www.motortech.de.
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 the 2015 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.
CONTACT:
Michael W. Harris
Vice President – Finance and Investor Relations
(262) 544-4811 x2675
Michael.Harris@Generac.com
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