Generac Holdings Inc. · NYSE:GNRC
Generac — Merger or Acquisition (October 2011)
11 slides from Generac's merger presentation, Oct 3, 2011
Slide 1: Acquisition of Magnum Products Conference Call
Acquisition of Magnum Products Conference Call Aaron Jagdfeld President & Chief Executive Officer York Ragen Chief Financial Officer October 4, 2011
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ mater
Slide 3: Magnum Business Overview
Magnum Business Overview Magnum MMG55FH Flip Hood 52 kW Mobile Diesel Generator Magnum MMG55 49 kW Mobile Diesel Generator Magnum MLG20 Diesel Generator MTP 4000D Dry Prime Pump Magnum Family of Light Towers
Slide 4: Access to Incremental Distribution and End Markets
Access to Incremental Distribution and End Markets
Slide 5: Supporting the "Powering Ahead" Strategy
Supporting the “Powering Ahead” Strategy Acquisition of Magnum Products supports three of the four key objectives from our “Powering Ahead” strategic plan
Slide 6: Strategic Rationale for Acquiring Magnum
Strategic Rationale for Acquiring Magnum § Broadens Generac’s Industrial product offering and strengthens position in power equipment markets – Incremental product offering for Generac’s distribution § Adds new sales channels and end markets including industrial rental yards, road and commercial con
Slide 7: Balances Sales Mix between Residential and C&I
Balances Sales Mix between Residential and C&I Generac Sales by Product Class Generac (Stand Alone) LTM 6/30/11 Pro Forma LTM 6/30/11
Slide 8: Integration & Key Opportunities
Integration & Key Opportunities § Magnum will continue to operate its existing manufacturing facility in Berlin, Wisconsin § Will maintain Magnum’s brands and sales force given company’s strong reputation in its markets § Experienced integration team consisting of members of both companies created a
Slide 9: Transaction Overview
Transaction Overview § Approximately $80 million; subject to customary, post-close working capital adjustment § Modest earn-out based on future performance of a certain product line currently in development TRANSACTION VALUE FINANCING STRUCTURE § Cash on hand § Transaction structured as an asset pur
Slide 10: Transaction financial impact summary
+ Between $25-30 million * Between $0.03-$0.04 per share, excluding ~ $1mm in transaction costs + Begins in 2012, and should be complete during 2013 + Approximately $2 million annually on a run-rate basis a + Pro-forma leverage as of 6/30/11 w/ credit agreement cost synergies — 3.7... nearly leverag
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA The computation of Adjusted EBITDA is based on the definition of EBITDA contained in Generac's credit agreement, dated as of November 10, 2006. Included in Generac’s earnings releases, to supplement the Company's financial results presented in accordance w
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