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Generac acquires Ottomotores

Company to pay $46 million cash for firm

Nov. 28, 2012

Generac Holdings Inc. announced Nov. 20 that one of its subsidiaries has signed a definitive share purchase agreement to acquire from a subsidiary of TT electronics plc all of the shares of Ottomotores UK Limited and its affiliates. This includes the operations of Ottomotores Mexico and Ottomotores Brazil, (collectively "Ottomotores") for $46.5 million in cash, subject to certain closing net asset adjustments.

Founded in 1950 and headquartered in Mexico City, Ottomotores Mexico is a leading manufacturer of power generation equipment in Mexico and other parts of Latin America. Ottomotores Brazil, located in Curitiba, recently entered the Brazilian market and has been steadily gaining traction in one of Latin America's fastest-growing markets. The combined Ottomotores businesses have more than 500 employees and 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 Jagdfeld, 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 provides a platform for future growth in additional markets outside North America through Ottomotores' broad product offering of higher output power products and strong, established distribution network.

"With both companies having a long history in their own markets and deep expertise in the backup power generation business, we believe that there are many synergies and opportunities to grow with the combination of these companies," said Francisco Haro, managing director of Ottomotores Mexico.

"We are looking forward to working closely together with such an experienced management team to create a formidable backup power generation company serving global markets," said Jagdfeld.

After the close of the transaction, Ottomotores' management team will continue to lead the company and Generac will maintain the Ottomotores brand name in the market place. It is expected that the transaction will close before the end of January 2013 pending receipt of all customary and required regulatory approvals. The combined companies will employ more than 2,800 people globally.

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Weekend Happenings

Featured this week:  

The Art of the Bicycle: 11 a.m. Nov. 21, 26, Delafield Arts Center, 719 Genesee St., Delafield. Diane Lehman, Peter Kudlata and Wheel & Sprocket. Gallery hours are 11 a.m.-4 p.m. Wednesday through Friday and 11 a.m.-3 p.m. first and third Saturdays and by appointment, Free www.delafieldartscenter.org.

Organ Concert: 1:30 p.m. Nov. 21, St. Jerome Catholic Church, 995 S. Silver Lake St., Oconomowoc. Oconomowoc Music Club is hosting a concert by renowned organist Dr. Simone Gheller. Refreshments will be served after the concert. Free.

Yuletide Faire: 5-9 p.m. Nov. 21; 9 a.m.-3 p.m. Nov. 22, Prairie Hill Waldorf School, N14-W29143 Silvernail Road, Pewaukee. $4 in advance or $5 at the door for adults and $1 in advance or $2 at the door for children under 15. Features strolling minstrels and costumed characters, puppet shows, storytelling, candle dipping, face painting, children’s craft workshops, children’s holiday shopping, live music, silent auction, children’s book sale, natural toys, 35 vendors, warm food, homemade desserts, candies, nuts and other treats. 

Fashionable Tidings Gala Luncheon: 11 a.m.-2 p.m. Nov. 22, Country Springs Hotel, 2810 Golf Road, Pewaukee. Holiday fashions of local clothiers Paul Bruce Goodman and Liebling Leather. Music by Brusubardis String Ensemble. Lunch includes shrimp scamp and angel hair pasta with vegetables provencale. Wine tasting  and auction. Benefits Waukesha Choral Union. $35. Call (414) 297-9310 for tickets. www.choralunion.org.

Updates to this calendar are made weekly Monday afternoon. 

 

All weekend happenings.