Generac Holdings Inc., a designer and manufacturer of generators and engine-powered products, agreed to buy Baldor Electric Co.’s generator products division, Baldor Generators. The terms of the sale were not announced. The acquisition is expected to close during the fourth quarter of 2013, [.
The Baldor brand name is not included in the sale past a transition date. Generac said it would continue to support Baldor Generator’s customers and distribution network.
Baldor Generators produces portable, mobile, standby and prime power generators ranging from 3 kW to 2.5 MW that are distributed throughout North America. It is headquartered in Waukesha, Wis. The seller, Baldor Electric, is a subsidiary of the ABB Group.
“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,” stated 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.”
Jagdfeld said buying the Baldor Generator business would add to Generac’s effort to grow its share of the commercial and industrial power generation market, and add production and testing 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,” he said.