Generac Holdings Inc. (“Generac” or the “Company”) (NYSE: GNRC)
today announced the signing of an agreement to acquire Enbala Power
Networks Inc. (“Enbala”), a leading distributed energy resources
technology company. The deal solidifies Generac’s position as a
market leader in Smart Grid 2.0 technologies and opens
opportunities for the Company as a grid services provider.
Denver-based Enbala is one of the leading providers
of distributed energy optimization and control software needed to
ensure the operational stability of the world’s power grids. Its
Enbala Concerto™ platform is being used by utilities and energy
retailers around the world to leverage the power of distributed
energy resources (DERs) to respond to the real-time energy
balancing needs of power systems and energy markets.
“We’re on the leading edge of a remarkable
transformation of the electrical grid, moving from a dated and
centralized power distribution model to one that will be digitized,
decentralized and more resilient,” said Aaron Jagdfeld, Chief
Executive Officer of Generac. “Enbala is a proven virtual power
plant and distributed energy resource management platform, and we
believe their business model can be incredibly synergistic with our
business. We’re proud to be at the forefront of the Smart Grid 2.0
with these new capabilities.”
With thousands of megawatts of residential and
industrial standby power generation installed in the United States,
Generac’s products can be leveraged in virtual power plant (VPP)
and distributed energy resource management system (DERMS) markets.
The Enbala Concerto™ software platform enables the connection of
DERs to register and participate in distributed energy aggregation
and control programs. This means otherwise dormant back up power
generation assets can come online as part of a distributed energy
solution and generate revenue for the asset owner.
As utility companies adopt cleaner forms of energy
while simultaneously dealing with power disruptions, the
opportunities to optimize the grid with DERs are becoming more
creative. Residential and C&I rooftop solar, behind-the-meter
battery storage systems, electric vehicles and flexible electricity
load management are key asset components of a healthy future for
Generac and distributed energy resources management.
“Distributed generation is a critical next step for
utility companies faced with meeting peak demand while also dealing
with capacity constraints and regulatory restrictions,” said
Jagdfeld. “Enbala and Generac will be able to harness the power of
everything from solar-plus-storage systems to our own generators to
help limit the need for new power plants and maintain the
convenience and flexibility of diversified power production.”
“Together with Generac, we have an unprecedented
opportunity to make our energy grids more efficient, resilient and
economical,” said Bud Vos, President and CEO of Enbala. “As part of
the Generac team, we can now accelerate our vision for a cleaner
grid, leveraging our technology and capabilities that help
continuously balance supply and demand while enabling rapid and
profoundly beneficial changes in our energy markets.”
The transaction is expected to close within thirty
days. Terms of the deal were not disclosed.
INVESTOR RELATIONS CONTACT:
Michael Harris Investor.Relations@generac.com | 262-506-6064
MEDIA CONTACT: David Racine
david@punch-pr.com | 414-534-6948
About GeneracFounded in 1959,
Generac is a leading global designer and manufacturer of a wide
range of energy technology solutions and other power products. As
an industry leader serving residential, light commercial, and
industrial markets, Generac's products and solutions are available
globally through a broad network of independent dealers,
distributors, retailers, e-commerce partners, wholesalers and
equipment rental companies, as well as sold direct to certain end
user customers.
About
EnbalaEnbala provides the advanced technology
needed to ensure the operational stability of the world’s power
grids by harnessing the power of distributed energy. Concerto,
Enbala’s real-time energy-balancing platform, provides a highly
flexible approach for creating controllable and dispatchable energy
resources from flexible loads, energy storage and renewable energy
sources. The platform underpins Enbala’s award-winning and
industry-leading DERMS and VPP technology and dynamically optimizes
and dispatches distributed energy resources to respond to the
real-time needs of the power system. The platform gives energy
retailers and utilities the flexibility to operate in real-time and
to better manage the escalating complexities of increasingly
variable energy assets and evolving market opportunities.
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
our products;
- availability, cost and quality of raw materials and key
components from our global supply chain and labor needed in
producing our products;
- the impact on our results of possible fluctuations in interest
rates, foreign currency exchange rates, commodities, product mix
and regulatory tariffs;
- 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 we may encounter as our business expands globally
or into new markets;
- our dependence on our distribution network;
- our ability to invest in, develop or adapt to changing
technologies and manufacturing techniques;
- loss of our key management and employees;
- increase in product and other liability claims or recalls;
- failures or security breaches of our networks or information
technology systems;
- changes in environmental, health and safety, or product
compliance laws and regulations affecting our products or
operations; and
- the duration and scope of the impacts of the COVID-19 pandemic
are uncertain and may or will continue to adversely affect our
operations, supply chain, distribution, and demand for certain of
our products and services.
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. In the
current environment, some of the above factors have materialized
and may or will continue to be impacted by the COVID-19 pandemic,
which may cause actual results to vary from these 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 2019 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.
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