Briggs & Stratton Corp. to acquire Generac Portable Products, Inc.

Briggs & Stratton Corp. has signed a letter of intent to acquire the common stock of Generac Portable Products, Inc., of Jefferson, Wis., for $55 million in cash. Total consideration at closing, which includes an anticipated $215 million of outstanding debt, is expected to be $270 million. Generac anticipates $250 million in net sales for the fiscal year ending July 1, 2001.

Generac Portable Products is a leading designer, manufacturer and marketing of engine-powered products. The company’s two principal product lines are portable generators and pressure washers.

“This acquisition will bring together two companies that share the vision of strong future growth for portable and standby generator products in the U.S. market as dependable sources of power become an issue,” says John S. Shiely, Briggs & Stratton Corp.’s president and chief operating officer.

Generac Portable Products is the first acquisition that Briggs & Stratton has made where the acquired company is the manufacturer of a consumer product. “Briggs & Stratton has historically been an engine supplier to original equipment manufacturers. We believe that there can be significant value creating opportunities in combining the breadth and quality of Generac Portable Product’s product lines with the brand equity associated with the Briggs & Stratton name,” Shiely says.

“We’re excited about this combination,” says Dorrance Noonan, president and chief executive officer of Generac Portable Products. “We pride ourselves as being this industry segment’s leader in product innovation and responsiveness to customers’ needs for value delivery. We look forward to accomplishing our goals in these areas better than before through an even more integrative approach to meeting the market’s needs.”

Briggs & Stratton is the world’s largest producer of air-cooled gasoline engines for outdoor power equipment. The company designs, manufactures, markets and services these products for original equipment manufacturers worldwide. Briggs & Stratton employs approximately 7,200 people worldwide and had fiscal 2000 sales of $1.6 billion.