Acquisition provides an expanded portfolio
of professional grade, engine-powered products primarily sold under
the DR® Power Equipment brand name
Generac Holdings Inc. (NYSE: GNRC) (“Generac”), a leading
designer and manufacturer of power generation equipment and other
engine powered products, announced today the acquisition of Country
Home Products, Inc and its subsidiaries (collectively, Country Home
Products), effective August 1, 2015.
Founded in 1985 and headquartered in Vergennes, Vermont, Country
Home Products is a leading manufacturer of high-quality,
innovative, professional-grade engine-powered equipment used in a
wide variety of property maintenance applications. Primarily sold
in North America under the DR® and Neuton® brand names, Country
Home Products employs over 200 people across its headquarters and
two other facilities located in Vermont.
“Acquiring Country Home Products is a great strategic fit for
Generac’s business and is perfectly aligned with our Powering Ahead
strategic objective of diversifying our end markets with new
products and services,” said Aaron Jagdfeld, President and Chief
Executive Officer. “This acquisition dramatically expands our
chore-related products line-up and will provide additional scale to
our residential engine-powered tools platform. We believe this
transaction should create meaningful cross-selling opportunities
with our existing distribution and should also generate certain
cost synergies as we leverage our existing global sourcing and
manufacturing capabilities.”
“This is a very exciting transaction for Country Home Products,”
said Joe Perrotto, President of Country Home Products. “It will
open up even larger markets for sales of DR®, Neuton® and Generac®
products both in the U.S. and globally, and will also create
meaningful opportunities to improve our product costs and
ultimately the value we bring to our customers. We are pleased to
join the Generac family and look forward to our continued success
as we work together to drive growth and bring exceptional
products, service, and value to the markets we serve.”
Country Home Products’ management team will continue to lead the
business going forward, and the DR® and Neuton® brand names will
join Generac’s family of brands in serving a broad, global customer
base. The purchase price and other terms of the acquisition were
not announced. Additional comments regarding this acquisition will
be provided when Generac releases its second quarter 2015 financial
results and holds a conference call on Thursday, August 6,
2015.
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 Country Home Products
Country Home Products, founded in 1985 and based in Vergennes,
Vermont, is a leading developer, manufacturer and marketer of
innovative, professional-grade engine-powered equipment used in a
wide variety of property maintenance applications sold under the
DR® and Neuton® brands. The company’s broad product line of
engine-powered tools are primarily sold throughout North America
and include field & brush mowers, chippers & shredders,
trimmers, leaf vacuums, stump grinders, log splitters and
battery-powered lawn mowers. For more information, go to
www.chp.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/20150803005707/en/
Generac Holdings Inc.Michael W. Harris, (262) 544-4811 x2675Vice
President – Finance and Investor
RelationsMichael.Harris@Generac.com
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