Waukesha-based Generac Holdings Inc. has signed an agreement to acquire Baldor Electric Company’s generator products division, which is based in Oshkosh.
Baldor is a subsidiary of Zurich, Switzerland-based ABB Group, which makes drives, motors, generators, power electronics and low voltage products and systems in New Berlin.
Baldor Generators manufactures portable, mobile, standby and prime power generators ranging in power from 3 KW to 2.5 MW at its locations across the country.
When the acquisition is completed, which is expected in the fourth quarter, Baldor Generators employees will become Generac employees. The Oshkosh Baldor facility will be a Generac facility, and the Baldor brand will be phased out.
Generac will continue to support Baldor’s existing customers and distribution market.
“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 chief executive officer 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,” Jagdfeld said.
The companies did not disclose the terms of the transaction.
