Generac buys Magnum Products for US$80m
By Murray Pollok06 October 2011
US standby power specialist Generac Power Systems has acquired Magnum Products, the Wisconsin-based lighting tower and mobile generators manufacturer, for US$80 million.
The deal, announced on Monday, will give Generac access to customers in rental, construction and government/military markets and add lighting towers, construction gensets and pumps to its product range.
Generac said Magnum's product design expertise would also allow it to penetrate new international markets.
Following the acquisition Magnum will continue to operate as a stand-alone business from its current base in Berlin, where it employs 330 people, and the brand will be maintained.
Magnum reported $108 million revenues in the year to 30 June 2011 and EBITDA profits of $14 million. Generac, based in Waukesha, Wisconsin, had sales of $607 million for the year to 30 June 2011. Its biggest market is sales of generators to the residential market. Its industrial products are mainly standby generators and it is not strong in the construction or rental sectors.
"Magnum is an outstanding strategic fit for Generac's business," said Aaron Jagdfeld, president and chief executive officer of Generac. "This acquisition brings together two of Wisconsin's leading manufacturers to better serve customers. We are very excited about what we will achieve through our combined efforts in engineering, sales, and service."
Magnum was privately owned by its founder and chairman, Tom Joseph, who is now retiring. "Both companies have earned outstanding reputations in their respective market places and the combined company will be very powerful", said Mr Joseph, "Magnum and Generac have a bright future, and Magnum's outstanding leadership team will execute a seamless transition under Generac's ownership."
Founded in 1959, Generac is a manufacturer backup power generation products serving residential, light commercial and industrial markets. Its power systems range from 800 W to 9 MW.
Magnum's product range includes a wide range of portable gensets up to 372 kW, trash and diaphragm pumps, and around 15 different lighting towers. It was founded in 1988.