Generac Buys Ottomotores
Generac Holdings Inc., Waukesha, Wis. a designer and manufacturer of back-up power generation products, announced that one of its subsidiaries has signed a definitive share purchase agreement to acquire from a subsidiary of TT electronics plc, all of the shares of Ottomotores UK Limited and its affiliates, including the operations of Ottomotores Mexico and Ottomotores Brazil, for $46.5 million in cash, subject to certain closing net asset adjustments.
Founded in 1950 and headquartered in Mexico City, Ottomotores Mexico is a manufacturer of power generation equipment in Mexico and other parts of Latin America. Ottomotores Brazil, located in Curitiba, recently entered the Brazilian market. The combined Ottomotores businesses have more than 500 employees and generated revenues of $81.6 million in fiscal 2011.
Generac said the acquisition of Ottomotores provides a platform for future growth in additional markets outside North America through Ottomotores’ product offering of higher output power products and distribution network.
"Ottomotores is a terrific strategic fit for Generac’s business, providing immediate scale for our international expansion efforts," said Aaron Jagdfeld, president and chief executive officer of Generac. "This acquisition is directly in line with our Powering Ahead strategic plan and positions Generac to participate in the significant global market that exists for commercial and industrial backup power generation by offering products tailored to the needs of customers in individual international markets."
Following the close of the transaction, Ottomotores’ management team will continue to lead the company and Generac will maintain the Ottomotores brand name in the market place. It is expected that the transaction will close before the end of January 2013 pending receipt of all customary and required regulatory approvals. The combined companies will employ more than 2,800 people globally.
Slightly more than a year ago, Generac purchased Magnum Products, Berlin, Wis., a manufacturer of gen-sets and light towers. Earlier this year, the company purchased Gen-Tran Corp., a transfer switch and portable generator accessory manufacturer located in Alpharetta, Ga.