Generac Holdings Inc. (GNRC: Quote) announced that one of its subsidiaries has signed a definitive share purchase agreement to acquire from a subsidiary of TT electronics plc all of the shares of Ottomotores UK Limited and its affiliates, including the operations of Ottomotores Mexico and Ottomotores Brazil, or collectively “Ottomotores” for $46.5 million in cash.
Founded in 1950 and headquartered in Mexico City, Ottomotores Mexico is a manufacturer of power generation equipment in Mexico and other parts of Latin America.
Ottomotores Brazil, located in Curitiba, recently entered the Brazilian market. The combined Ottomotores businesses have more than 500 employees and generated revenues of $81.6 million in fiscal 2011.
Following the close of the transaction, Ottomotores’ management team will continue to lead the company and Generac will maintain the Ottomotores brand name in the market place. It is expected that the transaction will close before the end of January 2013 pending receipt of all customary and required regulatory approvals. The combined companies will employ more than 2,800 people globally.
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by RTT Staff Writer
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