Another Generac Acquisition
By Mike Osenga14 February 2018
Generac Holdings Inc., which expanded its product range and global footprint through a frenetic series of acquisitions starting in 2011, has been comparatively quiet since it wrapped up its acquisition of Germany’s Motortech in January 2017.
Now Generac, the Waukesha, Wis.-based manufacturer of generators and other engine powered products, has announced the signing of a purchase agreement to acquire the shares of Selmec Equipos Industriales, S.A. de C.V. in Mexico City 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 aftersales support services of the business.
The transaction is expected to close in three to six months following pending receipt of required regulatory approval.
Selmec, founded in 1941 and headquartered in Mexico City, is a designer and manufacturer of diesel gen-sets from 10 kW to 2750 kW and natural gas and LP units from 30 to 400 kW along with water and fire tube boilers. Cummins, Mitsubishi and Perkins are listed as diesel engine suppliers.
With approximately 300 employees and 100,000 sq. ft. of production capacity, Generac’s announcement said Selmec brings a service platform and specialized engineering capabilities, together with 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.”