Leading electric power product supplier,
Generac Holdings Inc.
), recently announced the acquisition of Tower Light Srl and its
subsidiaries from the European private equity fund, Ambienta I
for an undisclosed amount. The deal is expected to close in
third-quarter 2013 and is subject to regulatory approvals.
Based in Italy, Tower Light is a leader in the development and
supply of mobile light towers. The company's market spans across
50 locations ranging from Europe and the Middle East to Africa
and Australasia. Mobile light towers are generally used in
events, road works and construction sites as they are easy and
convenient to use.
Along with these, Tower Light also includes static lighting
towers, special lighting towers and security towers in its
products range. The company generated revenues of €37 million
($47.6 million) in 2012.
Generac offers a range of power products for the residential,
commercial and industrial markets. The company manufactures
portable power products, power washers, power inverters, mobile
power generators for the end users. With the acquisition, Generac
will become a leader in the light towers business with an
expanded geography to explore.
Generac has been performing well over the past few quarters.
The company reported adjusted earnings per share of $1.21, in the
first quarter of 2013, spurting 26% year over year. Demand for
home standby and portable generators have been increasing,
helping the company boost its earnings. The acquisition is
expected to generate significant revenues for the company.
Generac has been making efforts to expand inorganically. Last
year, it acquired the power generation equipment manufacturer,
Ottomotores UK Limited, including the operations of Ottomotores
Mexico and Ottomotores Brazil for $46.5 million. The company
carried out the acquisition to expand in the international
Generac is expected to release its second-quarter 2013 results
on Jul 30, 2013. The Zacks Consensus Estimate stands at 76 cents,
indicating a year-over-year growth of 31.3%.
Generac currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the industry include
Arrow Electronics, Inc.
). All these companies carry a Zacks Rank #2 (Buy).
ARROW ELECTRONI (ARW): Free Stock Analysis
CALAMP CORP (CAMP): Free Stock Analysis
COGNEX CORP (CGNX): Free Stock Analysis
GENERAC HOLDING (GNRC): Free Stock Analysis
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