Generac to Acquire Majority Share of PR Industrial
February 15 2016 - 9:00AM
Business Wire
Acquisition creates a major player in the
global power generation market
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;
- 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160215005101/en/
Generac Holdings Inc.Michael W. Harris, 262-544-4811 x2675Vice
President – FinanceMichael.Harris@Generac.com
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