Briggs & Stratton Acquires Simplicity Manufacturing
Briggs & Stratton Corporation recently announced that it and its subsidiary, Briggs & Stratton Power Products Group, LLC, have signed a definitive agreement to acquire Simplicity Manufacturing, Inc. of Port Washington, Wis., for a total consideration of $227.5 million in cash, subject to adjustments.
Simplicity Manufacturing is a designer, manufacturer and marketer of outdoor power equipment used in both consumer and commercial lawn and garden applications. Simplicity Manufacturing’s products are distributed through independent dealers under the brand names Simplicity, Snapper, Ferris and Giant-Vac. Simplicity Manufacturing had net sales of $285 million for the 10 months ended April 30, 2004, and anticipates net sales of approximately $350 million for the 12 months ending June 30, 2004.
Briggs & Stratton expects that the acquisition will be accretive to diluted earnings by 35 to 45 cents per share in fiscal 2005 based on preliminary purchase price allocations.
Completion of the transaction is subject to conditions customarily associated with a transaction of this type. The transaction is targeted for closing at the beginning of Briggs & Stratton’s fiscal 2005 first quarter, at which time Simplicity Manufacturing will become part of the Briggs & Stratton Power Products Group.
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