Briggs & Stratton Corp. has signed a definitive agreement to acquire Companhia Caetano Branco of Brazil for about $60 million, subject to post-closing adjustments. Founded in 1936, Branco is a leading brand in the Brazilian light power equipment market with a broad range of outdoor power equipment used primarily in light commercial applications in Brazil. Its products, including generators, water pumps, and light construction equipment, are sold throughout Brazil through its independent network of more than 1,200 dealers.
Briggs & Stratton anticipates financing the transaction from cash on hand and its existing credit facilities. Branco has annual sales of about $40 million with operating margins ranging from about 13 to 17 percent across its various product lines. The companies expect to close the acquisition within three to four months subject to customary regulatory approvals.
“This acquisition brings two great companies with incredible brand strength together,” said Todd Teske, chairman, president and CEO of Briggs & Stratton Corp. “It is also another step in executing our strategy to expand in developing regions of the world in order to expand our product portfolio in higher margin categories and to diversify our geographic footprint.”
“This is a very positive outcome for Branco customers and Briggs & Stratton,” said Denise Remor, CEO of Branco. “The Branco business is a leading brand in Brazilian light power equipment with a very strong distribution network in Brazil. Its brand strength and current operational performance can only add to the strength of a company like Briggs & Stratton.”
The acquisition immediately makes Briggs & Stratton a significant player in the Brazilian market. “With Branco’s brand strength, employees and customer base, we will have an established, well-performing company located in a country that has aggressive, infrastructure needs and a history of higher growth opportunities, which can only add to the strength of our company,” added Teske.
Briggs & Stratton, based in Milwaukee, is the world’s largest producer of gasoline engines for outdoor power equipment, and a leading manufacturer of portable generators, pressure washers, standby generators and lawn-and-garden equipment. Branco is headquartered in Curitiba, Brazil.