Generator manufacturer Generac (NYSE: GNRC ) announced yesterday it is acquiring substantially all of the generator products assets of ABB Group's (NYSE: ABB ) Baldor Electric subsidiary. Terms of the transaction were not disclosed.
Baldor has been in business for almost 50 years and, like Generac, offers a complete line of portable, mobile, standby, and prime power generators ranging from 3 kilowatts to 2.5 megawatts throughout North America.
Noting the acquisition will give Generac access to a larger industrial product line serving the North American and global power generation markets, Generac President and CEO Aaron Jagdfeld said in the press release, "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."
Generac is looking to increase its market share in the commercial and industrial power generation markets, and the Baldor acquisition will allow it to accelerate with greater scale and focus the organic growth opportunities it's already identified.
Once the transaction is completed sometime in the fourth quarter of 2013, the Baldor nameplate will disappear following a transition period, though Generac will continue to support Baldor Generator's existing customers and distribution network going forward. Employees of Baldor Generators will become employees of Generac and its Oshkosh, Wis., facility will become part of Generac's manufacturing footprint.
Based in Waukesha, Wis., as of June 30, Generac had trailing revenues of $1.39 billion.