Briggs & Stratton Corporation To Acquire Branco In Curitiba, Brazil
MILWAUKEE, Nov. 6, 2012 /PRNewswire/ -- Briggs & Stratton Corporation (NYSE: BGG) today announced that it has signed a definitive agreement to acquire Companhia Caetano Branco, of Brazil ("Branco") for approximately $60 million dollars, subject to post-closing adjustments. Founded in 1936, Branco is a leading brand in the Brazilian light power equipment market with a broad range of outdoor power equipment used primarily in light commercial applications in Brazil. Its products including generators, water pumps, and light construction equipment are sold through its independent network of over 1200 dealers throughout Brazil. Branco employs approximately 150 people in Brazil.
Briggs & Stratton anticipates financing the transaction from cash on hand and/or its existing credit facilities. Branco has annual sales of approximately $40 million with operating margins ranging from approximately 13% to 17% across its various product lines. Completion of the transaction is subject to conditions customarily associated with a transaction of this type. The transaction is targeted for closing within the next three to four months.
"This acquisition brings two great companies with incredible brand strength together. It is also another step in executing our strategy to expand in developing regions of the world in order to expand our product portfolio in higher margin categories and to diversify our geographic footprint," said Todd Teske, Chairman, President and CEO of Briggs & Stratton Corporation.
"This is a very positive outcome for Branco customers and Briggs & Stratton. The Branco business is a leading brand in Brazilian light power equipment with a very strong distribution network in Brazil. It's brand strength and current operational performance can only add to the strength of a company like Briggs & Stratton," stated Denise Remor, CEO of Branco.
"We view this acquisition very positively for Briggs & Stratton and for all of the stakeholders in each entity – employees, customers and shareholders. With Branco's brand strength, employees and customer base, we will have an established, well performing company located in a country that has aggressive infrastructure needs and a history of higher growth opportunities, which can only add to the strength of our company," said Todd Teske.
Briggs & Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the world's largest producer of gasoline engines for outdoor power equipment. Its wholly owned subsidiary Briggs & Stratton Power Products Group LLC is North America's number one marketer of portable generators and pressure washers, and is a leading designer, manufacturer and marketer of standby generators, along with lawn and garden and turf care through its Simplicity®, Snapper®, Snapper Pro®, Ferris® and Murray® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents.
Safe Harbor Statement:
This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words "believe", "estimate", "expect", "forecast", "intend", "plan", "project", "anticipates", and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the Company's current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully integrate Branco's operations into those of Briggs & Stratton; such integration may be more difficult, time-consuming or costly than expected; Branco's revenues following the transaction may be lower than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; changes in foreign exchange rates; changes in economic conditions in Brazil; and other factors disclosed from time to time in our SEC filings or otherwise, including the factors discussed in Item IA, Risk Factors, of Briggs & Stratton's Annual Report on Form 10-K and in its periodic reports on Form 10-Q.
SOURCE Briggs & Stratton Corporation