Waukesha-based Generac Holdings Inc. announced it plans to acquire Latin American generator manufacturer Ottomotores UK Ltd. for $46.5 million.
Ottomotores includes affiliates Ottomotores Mexico, based in Mexico City, and Ottomotores Brazil, based in Curitiba.
Ottomotores Mexico manufactures power generation equipment throughout Latin America, while Ottomotores Brazil recently entered the Brazilian market and has been growing its market presence.
Ottomotores UK Ltd., a subsidiary of London-based TT Electronics plc, had revenues of $81.6 million in 2011. Altogether, the company has more than 500 employees.
The combined companies will employ more than 2,800.
“Ottomotores is a terrific strategic fit for Generac’s business, providing immediate scale for our international expansion efforts,” said Aaron Jagdfeld, president and chief executive officer 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.
“We welcome the entire Ottomotores team to the Generac family,” Jagdfeld said. “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.”
The acquisition will enable Generac to grow its business to new markets with a broad selection of higher output power products and a strong distribution network.
“We at Ottomotores are very excited about this transaction,” said Francisco Haro, managing director of Ottomotores Mexico. “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.”
The Ottomotores management team will remain in place, and Generac will keep the Ottomotores brand name.
The transaction is expected to close in January, pending regulatory approvals.
Generac, which has seen increased demand for home standby and portable generators as a result of recent major power outage events, including Hurricane Sandy, expects net sales during the third quarter of 2012 to be in the range of $295 million to $300 million.
