Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a
leading global designer and manufacturer of energy technology
solutions and other power products, today announced the signing of
an agreement to acquire ecobee Inc. (“ecobee”), a leader in
sustainable smart home solutions, in a transaction valued up to
$770 million contingent on the achievement of certain performance
targets.
A pioneer in the smart thermostat market, ecobee was founded in
2007 and is headquartered in Toronto, Canada. With a team of over
500 employees globally, ecobee currently offers several ENERGY
STAR-certified thermostats and a suite of home monitoring products,
all designed with a focus on conservation, convenience, peace of
mind and comfort. ecobee’s smart thermostats intelligently optimize
heating and cooling systems to deliver significant energy savings
for homeowners. With over two million connected homes, ecobee
customers in North America have saved more than 20 TWh of energy,
which is the equivalent of saving enough energy to take all the
homes in Los Angeles off the grid for an entire year.
“ecobee’s solutions are an important addition to Generac’s
extensive residential energy technology portfolio,” said Aaron
Jagdfeld, president and chief executive officer of Generac.
“Residential HVAC systems represent the largest energy-consuming
device in the home today and ecobee’s smart thermostats and sensors
offer the most intelligent way to balance comfort with
conservation. In addition, the ability to combine ecobee’s
cutting-edge technologies with Generac’s power generation, energy
storage and energy management devices will allow us to create a
clean, efficient, and reliable home energy ecosystem that will not
only save homeowners money, but also help grid operators meet the
challenges of an electrical grid under enormous stress by providing
solutions to better balance supply and demand.”
“Generac’s evolution into an energy technology solutions company
creates many opportunities to integrate our ecobee products with
their residential device offerings, enabling direct monitoring and
control of a significant portion of the home’s electrical load,”
said Stuart Lombard, founder and chief executive officer of ecobee.
“We are excited to join the Generac team so together we can deliver
a cleaner, more resilient and sustainable energy future for our
customers and communities.”
At closing and subject to customary adjustments, Generac will
pay $200 million in cash along with $450 million in GNRC common
stock to the current equity holders of ecobee. Additionally, upon
achievement of certain performance targets between closing and June
30, 2023, the sellers may receive up to $120 million in additional
shares of GNRC common stock.
The acquisition is expected to close during the fourth quarter,
subject to customary closing conditions, including clearance under
the Hart-Scott-Rodino Antitrust Improvements Act.
About GeneracGenerac is a leading energy
technology company that provides backup and prime power systems for
home and industrial applications, solar + battery storage
solutions, advanced power grid software platforms and engine- and
battery-powered tools and equipment. Founded in 1959, Generac
introduced the first affordable backup generator and later created
the category of automatic home standby generator. The company is
committed to sustainable, cleaner energy products poised to
revolutionize the 21st century electrical grid.
About ecobeeecobee Inc. was founded in 2007
with a mission to improve everyday life while creating a more
sustainable world. Today, ecobee continues to innovate with smart
home solutions that solve everyday problems with comfort, security,
and conservation in mind. With ecobee’s products, including the
SmartThermostat and SmartCamera both equipped with voice control,
ecobee continues to encourage consumers to imagine what home could
be. For more information, visit ecobee.com.
Forward Looking StatementsCertain 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
our products;
- availability, cost and quality of raw materials and key
components from our global supply chain and labor needed in
producing our products;
- the impact on our results of possible fluctuations in interest
rates, foreign currency exchange rates, commodities, product mix
and regulatory tariffs;
- the ability to satisfy the closing conditions for the
acquisition of ecobee on the timeline expected or at all;
- 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;
- the duration and scope of the impacts of the COVID-19 pandemic
are uncertain and may or will continue to adversely affect our
operations, supply chain, and distribution for certain of our
products and services;
- difficulties we may encounter as our business expands globally
or into new markets;
- our dependence on our distribution network;
- our ability to invest in, develop or adapt to changing
technologies and manufacturing techniques;
- loss of our key management and employees;
- increase in product and other liability claims or recalls;
- failures or security breaches of our networks, information
technology systems, or connected products; and
- changes in environmental, health and safety, or product
compliance laws and regulations affecting our products, operations,
or customer demand.
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. In the current
environment, some of the above factors have materialized and may or
will continue to be impacted by the COVID-19 pandemic, which may
cause actual results to vary from these 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 2020 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.
INVESTOR CONTACT: Michael HarrisVice President – Corporate
Development & Investor Relations(262)
506-6064InvestorRelations@Generac.com
MEDIA CONTACT: Tami KouDirector of Marketing Communications
& Public Relations(262) 544-4811 Ext.
3950Tami.Kou@Generac.com
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