Leading electric power product supplier, Generac Holdings Inc. (GNRC - Free Report) , 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 - Free Report) , CalAmp Corp. (CAMP - Free Report) and Cognex Corp. (CGNX - Free Report) . All these companies carry a Zacks Rank #2 (Buy).