Generac Acquires Country Home Products
By Business Wire News
By Business Wire News
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.
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.
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.
Generac Holdings Inc.
Michael W. Harris, (262) 544-4811 x2675
Vice President – Finance and Investor Relations