Generac Holdings, a leading designer and manufacturer of back-up power generation products, has signed an agreement to acquire Ottomotores U.K. Limited and its affiliates, including the operations of Ottomotores Mexico and Ottomotores Brazil for $46.5 million in cash, subject to closing adjustments.
Founded in 1950 and based in Mexico City, Ottomotores Mexico is a leading manufacturer of power generation equipment in Mexico and other parts of Latin America. Ottomotores Brazil, based in Curutiba, Brazil, recently entered the Brazilian market and has been gaining traction there. The combined Ottomotores businesses generated revenues of $81.6 million in fiscal 2011.
“Ottomotores is a terrific strategic fit for Generac’s business, providing immediate scale for our international expansion efforts,” said Aaron Jagfeld, president and CEO of Generac. “This acquisition is directly in line with our ‘Powering Ahead’ strategic plan and positions Generac to participate in the significant global market that exists for commercial and industrial backup power generation by offering products tailored to the needs of customers in individual international markets.”
The acquisition of Ottomotores provides a platform for future growth in additional markets outside North America through Ottomotores’ product offering of higher output power products and distribution network.
Ottomotores’ management team will continue to lead the company and Generac will maintain the Ottomotores brand name in the marketplace. The company expects the transaction to close before the end of January 2013.