Generac Holdings Inc. (NYSE:GNRC) (“Generac”), a leading designer and manufacturer of power generation equipment and other engine powered products, announced today the signing of an agreement to acquire the assets of Motortech Holding GmbH & Co. KG (“Motortech”). The transaction, subject to regulatory approval, is expected to close in the first quarter of 2017.
Founded in 1988 and headquartered in Celle, Germany, Motortech is a leading manufacturer of gaseous-engine control systems and accessories. The company’s gaseous-fuel sub-systems include knock detection, mixers, throttles and various controls, which are sold to European gas-engine manufacturers and to aftermarket customers. Motortech employs over 250 people at its German headquarters, manufacturing plant in Poland and sales offices located in the U.S. and China.
“By combining resources and technology, Generac and Motortech will lead the industry in innovative, spark-ignited engine generator offerings,” said Patrick Forsythe, Executive Vice President of Global Engineering at Generac. “This acquisition allows Generac to expand its global market for gaseous products beyond standby generators, and it aligns with our strategy of gas power-generation leadership. It will significantly expand our worldwide spark-ignited engine capabilities, complementing the international growth Generac has experienced.”
“This is a very exciting transaction for Motortech,” said Florian Virchow, CEO of Motortech. “The integration into Generac will create broader product-application markets globally, and is expected to bring 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 lead the gaseous-fueled power-generation market around the world.”
The Virchow family and Motortech’s current management team will continue to lead the Motortech business after the acquisition is complete.
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 and industrial 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. For more information, go to www.generac.com.
Motortech was founded by the Virchow family in 1988 in Celle, near Hannover, Germany. The company started as a service and distribution organization, specializing in engine-replacement parts and stationary, gas-engine accessories. Today, the company has evolved into a leading global manufacturer of efficient gaseous engine systems for leading global OEMs. For more information, go to www.motortech.de.
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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:
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 the 2015 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.
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Michael W. Harris
Vice President – Finance and Investor Relations
(262) 544-4811 x2675