Did Generac Buy Powermate?
Generac, the leading manufacturer of backup generators, is known for its quality products and innovation. Powermate, on the other hand, is a relatively small player in the power products industry. Many people wonder if Generac has acquired Powermate to expand its product range and market reach. The answer is yes.
The Acquisition
In 2016, Generac acquired Powermate from the private equity firm, Sun Capital Partners. The acquisition was part of Generac’s strategy to broaden its product range and increase its market share. Generac paid around $46 million in cash for the acquisition.
What is Powermate?
Powermate is a manufacturer of portable generators, air compressors, pressure washers, and other power products. The company was founded in 1978 and has been providing reliable power solutions for homeowners and professionals.
Why Did Generac Buy Powermate?
Generac’s acquisition of Powermate was a strategic move to expand its product portfolio and reach new customer segments. Powermate’s products complemented Generac’s existing range of standby and portable generators, allowing the company to provide a complete range of power solutions to its customers.
Moreover, Powermate had a strong distribution network and brand presence in the home improvement and hardware retail channels. Generac saw this as an opportunity to increase its customer base and market share in these channels.
What Happened After the Acquisition?
After the acquisition, Powermate continued to operate as an independent brand within Generac. Powermate’s products were still available in the market, and the company continued to serve its customers with the same level of quality and reliability.
However, Generac did make some changes to streamline the operations of Powermate. The company reduced the number of SKUs (stock-keeping units) and focused on the core product lines. This helped to increase the efficiency of the production process and reduce costs.
Conclusion
Generac’s acquisition of Powermate was a strategic move to expand its product range and market reach. Powermate’s products complemented Generac’s existing range of power solutions, and the acquisition helped Generac to increase its market share in the home improvement and hardware retail channels.
The acquisition has been successful so far, and Powermate continues to provide reliable power solutions to its customers. Generac’s acquisition of Powermate is an example of how companies can grow and expand their operations through strategic acquisitions.
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Frequently Asked Questions: Did Generac Buy Powermate?
1. Is it true that Generac has acquired Powermate?
Yes, it is true that Generac has acquired Powermate. The acquisition took place in 2016, and since then, Powermate has operated as a subsidiary of Generac.
2. What does this acquisition mean for Powermate customers?
For Powermate customers, this acquisition means that they now have access to a wider range of high-quality generators, along with unparalleled after-sales support from one of the largest generator manufacturers in the world, Generac.
3. Will Powermate products be rebranded as Generac generators now?
No, Powermate products will continue to be sold under the Powermate brand name even after the acquisition. However, customers can expect to see some level of integration between the two companies, with Powermate products benefiting from Generac technology and expertise in the future.
4. Will there be any changes to Powermate’s product lineup as a result of this acquisition?
It is not yet clear whether there will be any significant changes to Powermate’s product lineup as a result of this acquisition. However, customers can expect to benefit from the combined expertise of two of the leading names in the generator industry, potentially leading to new and innovative products in the future.
Further reading: How Long Do Portable Generators Usually Last?