Milwaukee-based Briggs & Stratton Corp. announced it has acquired Companhia Caetano Branco of Brazil for a total consideration of approximately $57 million in cash.
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 through its independent network of more than 1,200 dealers throughout Brazil. Branco employs approximately 150 people in Brazil.
Briggs & Stratton financed the transaction with cash on hand. The acquisition is not anticipated to have a significant impact on sales or earnings in fiscal 2013.
“This acquisition brings two great companies with incredible brand strength together. It is also another step in executing our strategy to expand in developing regions of the world in order to diversify both our product portfolio and our geographic footprint,” said Todd Teske, president, chairman and chief executive officer of Briggs & Stratton. “We view this acquisition very positively for Briggs & Stratton and for all of the stakeholders in each entity – employees, customers and shareholders. 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 operating performance of our company.”
“This is a very positive outcome for Branco customers and Briggs & Stratton. 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,” said Denise Remor, CEO of Branco.