Generac Holdings Inc. (NYSE:GNRC), a leading global designer and
manufacturer of generators and other engine powered products,
announced today the signing of a purchase agreement to acquire the
shares of Selmec Equipos Industriales, S.A. de C.V. and its
wholly-owned subsidiaries from Enesa Energia, S.A. de C.V. and
Enesa, S.A. de C.V. The agreement includes the power generator
product and after-sale support services of the business.
Selmec, founded in 1941 and headquartered in Mexico City, is a
designer and manufacturer of industrial generators from 10 kW to
2,750 kW. With approximately 300 employees and 100,000 sq.ft.
of production capacity, Selmec offers a market leading service
platform and specialized engineering capabilities, together with
robust integration, project management and remote monitoring
services.
“Selmec’s deep experience in standby energy solutions,
specifically telecom, data center and other mission critical
applications, where power is essential for operational continuity,
makes this a great fit for our Latin America strategy,” said
Ricardo Navarro, Generac’s Senior Vice President - Latin
America. “Acquiring Selmec will allow us to dynamically scale
our existing Ottomotores business, leveraging both distribution and
operational footprints of the combined businesses to offer the
Latin American market a broader portfolio of products and
solutions.”
“This is a very exciting development for Selmec to partner with
a global leader in power generation technology to offer an expanded
portfolio of products and solutions. This transaction will allow
Selmec to continue to innovate, leveraging Generac’s technical
capabilities and expertise especially in gaseous powered
generation,” said Gabriel Hajj, Selmec’s CEO and Principal at
Enesa. “We are pleased to join the Generac family, and we
look forward to our continued success as we work together to
provide greater value to our customers.”
The transaction is expected to close in three to six months
following pending receipt of required regulatory approval.
About Generac (NYSE:GNRC):
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.
About Grupo Enesa (Enesa Energia, S.A. de C.V. and
Enesa, S.A. de C.V.)
Grupo Enesa is a private equity fund that invests and manages
companies in the energy and health sectors in Mexico and Latin
America. Its leadership team is integrated by a group of
professionals who have extensive experience in finance and
management operations, as well as a broad knowledge of the
industries and markets in which the fund participates. The fund
operates under a long-term strategy, focused on building solid,
high potential organizations.
About Selmec (Selmec Equipos
Industriales, S.A. de C.V.):
With more than 75 years in the distributed energy market, Selmec
designs and manufactures diesel generators from 10kW to 2,750kW and
natural gas and LP gas generators from 30kW to 400kW. Selmec
products are complemented with experience in integral solutions for
engineering, procurement, implementation, operation and maintenance
of power generation and management projects.
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, foreign currency exchange rates, commodities and product
mix;
- 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;
- 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 2016 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
(262) 544-4811 x2675 Michael.Harris@Generac.com
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