Generac Buying Baldor
Generac Holdings Inc. continues an impressive acquisition streak with the announcement that the Waukesha, Wis.-based designer and manufacturer of generators and other engine powered products, has signed a purchase agreement with Baldor Electric Co., a wholly-owned subsidiary of ABB Group, to acquire substantially all of the assets of Baldor’s generator products. The acquisition is expected to close in the fourth quarter of 2013, pending standard closing conditions. The terms of the transaction were not announced.
Located in Oshkosh, Wis., Baldor Generators offers a line of portable, mobile, standby and prime power generators ranging from 3 kW to 2.5 MW. Following the close of the transaction, the employees of Baldor Generators will become employees of Generac and the Oshkosh facility will become part of Generac’s manufacturing footprint. Although the Baldor brand name is not included past a transitionary period, Generac will continue to support Baldor Generator’s existing customers and distribution network going forward.
“Acquiring Baldor Generators is a great strategic fit for Generac’s business, providing us immediate access to a larger industrial product line to better support the North American and global power generation markets,” said Aaron Jagdfeld, president and chief executive officer of Generac. “By offering additional power solutions up to 2.5 MW, this acquisition improves our competitive position in the marketplace by increasing the addressable market that our distribution partners can serve.”
“Investing in the Baldor Generator business accelerates our organic efforts to increase our share of the commercial and industrial power generation market while also adding significant production and test capacity for future growth,” Jagdfeld said.
Generac’s buying binge began in October, 2011 when it purchased Magnum Products and brought its range for gen-sets into the fold. In February, 2012 it added Gen-Tran Corp. and its line of transfer switches and generator accessories. In November, 2012 Generac went international buying the Ottomotores UK generator set line. Most recently the company added a range of light towers with the purchase of Italy’s Tower Light Srl.