Generac to Acquire Tower Light - Analyst Blog

An image of multiple stacks of coins
Credit: Shutterstock photo

Leading electric power product supplier, Generac Holdings Inc. ( GNRC ), 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 market.

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. ( ARW ), CalAmp Corp. ( CAMP ) and Cognex Corp. ( CGNX ). All these companies carry a Zacks Rank #2 (Buy).

ARROW ELECTRONI (ARW): Free Stock Analysis Report

CALAMP CORP (CAMP): Free Stock Analysis Report

COGNEX CORP (CGNX): Free Stock Analysis Report

GENERAC HOLDING (GNRC): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More