Generac to Acquire Tower Light Business
July 25 2013 - 4:15PM
Business Wire
Generac Holdings Inc. (NYSE: GNRC), a leading designer and
manufacturer of generators and other engine powered products,
announced today the signing of a purchase agreement to acquire the
equity of Tower Light Srl and its wholly-owned subsidiaries from
European private equity fund Ambienta I, advised by Ambienta SGR,
and a group of minority-share investors.
Founded in 1996 and headquartered outside Milan, Italy, Tower
Light is a leading developer and supplier of mobile light towers
throughout Europe, the Middle East and Africa. Tower Light has
experienced growth and built a leading market position in the
equipment rental markets by leveraging their broad product offering
and strong global distribution network in over 50 countries. With
approximately 100 employees, Tower Light’s net sales for year ended
December 31, 2012 were approximately €37 million.
“Tower Light is a great strategic fit for Generac’s business,
providing an expanded product offering of light tower generators to
support additional geographic markets beyond those we serve today,”
said Aaron Jagdfeld, President and Chief Executive Officer of
Generac. “Acquiring Tower Light positions us as a global leader in
light towers, allowing us to participate in the growing rental
market for these products outside the U.S.”
“This is a very exciting development for Tower Light which opens
up many new opportunities and allows us to continue to
innovate and further develop the Tower Light product range. We are
pleased to join the Generac family, and we look forward to our
continued success as we work together to execute on potential
synergies and drive global growth for mobile power products,” said
Andrea Fontanella, Founder and Managing Director of Tower Light
Srl.
Following the close of the transaction, Tower Light’s management
team will continue to lead the company and the Tower Light brand
name will join Generac’s brands, including Magnum and Ottomotores,
in serving global power generation and associated markets. It is
expected that the transaction will close in the third quarter of
2013, pending standard closing conditions. The purchase price of
the acquisition was not announced.
Generac company news is available 24
hours a day, on-line at:
http://www.generac.com.
About Generac (NYSE: GNRC)
Since 1959, Generac has been a leading designer and manufacturer
of a wide range of generators 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 internationally through a broad network of independent
dealers, retailers, wholesalers and equipment rental companies.
About Tower Light Srl
Tower Light Srl, founded in 1996 and based at Villanova
d’Ardenghi (PV), is the European leader in the production of
lighting towers for construction and other applications. Through
continuous product development and a broad distribution network,
Tower Light Srl has become a leading supplier to construction and
equipment rental companies, providing mobile power equipment that
meets the specific needs of geographic markets across the
world.
About Ambienta, Sgr
Ambienta SGR is the largest European private equity fund focused
on the growth environmental sector. Ambienta I Fund, with
commitments of €217.5 million, has to date completed 10 investments
in the areas of energy efficiency, pollution reduction, renewables,
recycling, and primary resource management. Ambienta contributes
actively to the development of its portfolio companies, offering
industrial and managerial expertise and broad industrial relations.
Learn more about Ambienta at www.ambientasgr.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" 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 major power
outages;
- availability, cost and quality of raw
materials and key components used in producing Generac
products;
- the impact on our results of the
substantial increases in our outstanding indebtedness and related
interest expense due to the dividend recapitalization transactions
completed in May 2012 and 2013;
- the possibility that the expected
synergies, efficiencies and cost savings of the acquisitions of the
Ottomotores and Tower Light businesses or other acquisitions will
not be realized, or will not be realized within the expected time
period;
- the risk that the Ottomotores and Tower
Light businesses or other acquisitions that we make 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; 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”).
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.
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