Generac to Acquire Generator Business from Baldor Electric Co.
Generac Holdings, a leading designer and manufacturer of generators and other engine-powered products, today signed a purchase agreement with Baldor Electric Co., a wholly owned subsidiary of ABB Group, to acquire substantially all of the assets of Baldor’s generator products division.
Located in Oshkosh, Wis., Baldor Generators offers a complete line of portable, mobile, standby and prime power generators ranging from 3kW to 2.5MW throughout North America.
“Acquiring Baldor Generators is a great strategic fit for Generac’s business, providing us immediate access to a larger industrial product line to better support the North American and global power generation markets,” said Aaron Jagdfeld, president and CEO of Generac. “By offering additional power solutions up to 2.5MW, this acquisition improves our competitive position in the marketplace by increasing the addressable market that our distribution partners can serve.
“Investing in the Baldor Generator business accelerates our organic efforts to increase our share of the commercial and industrial power generation market while also adding significant production and test capacity for future growth. With our enhanced scale and focus, we believe we can execute on the meaningful revenue and cost synergies that we have identified to date.”
Following the close of the transaction, the employees of Baldor Generators will become employees of Generac and the Oshkosh, Wis., facility will become part of Generac’s manufacturing footprint. Although the Baldor brand name is not included past a transitionary period, Generac will continue to support Baldor Generator’s existing customers and distribution network going forward.
The acquisition is expected to close in the fourth quarter of 2013, pending standard closing conditions. The terms of the transaction were not announced.
Headquartered in Waukesha, Wis., Generac is a leading designer and manufacturer of a wide range of generators and other engine-powered products serving the residential, light commercial, industrial and construction markets. Generac's power products are available internationally through a broad network of independent dealers, retailers, wholesalers and equipment rental companies.
Baldor Electric Co. markets, designs and manufactures industrial electric motors, mechanical power transmission products and drives. Baldor, a member of the ABB Group, is headquartered in Fort Smith, Ark.
