Briggs & Stratton Corp. 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 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 1,200 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.
