Job Fair Lines Stretch Out the Door at Generac Event In Whitewater

Nov. 29--WHITEWATER -- Job seekers waited in lines out the door at Generac's Whitewater plant Wednesday hoping to land 100 full-time jobs being offered by the portable and home generator manufacturer.

"We have about 75 immediate openings here in this plant for production and assembly positions," said Andy Martin, director of operations for the Whitewater facility. "These positions, mostly assembly jobs, require at least a high school diploma but no experience."

Prior training and experience always are a plus, but Generac looks beyond basic skills, Martin said.

"We are looking for people with a lot of drive and ambition who will help us continue to take Generac to new levels," Martin said. "We want people who are driven to make improvements."

Most of the 75 production and assembly jobs will be filled from applications received at Wednesday's job effort. The other 25 openings are for higher levels of technology and will require a lengthier application process.

"I want to emphasize that just because someone could not make it to the job fair today doesn't mean they have missed an opportunity to work for Generac," Martin said. "If you're interested in working for Generac, go to our website and apply or stop by our offices here in Whitewater and fill out an application. Every application will be considered."

If prospective employees have skills different from those required for current openings, an application should be submitted, Martin said.

"When we see an application from someone with the attitude and drive we are looking for, we'll keep that application on file, even though there may not be a job available at that time," he said. "We are always looking for talent."

Many Generac employees, including the chief operating officer, started on the shop floor and worked their way up.

"Our COO, Dawn Tabat, has been with Generac for about 40 years," Martin said. "She started out in production on the floor. We have many employees who continued their education while working in production, for example, and then move up to other jobs."

Generac's Whitewater plant manufactures portable and home backup generators.

"We have seen an increase in demand for the home backup units that corresponds to events such as Hurricane Sandy," Martin said. "We view our role as helping people in their time of need."

The home backup units come in various power capabilities that are connected to a natural gas supply and the home's electric circuit.

The Whitewater facility manufactures power washers in addition to portable and home backup generators out of a 300,000-square-foot building. A separate 200,000-square-foot distribution center also is located on the Whitewater property.

By Stan Milam, The Janesville Gazette

Large Generac Holder Sells 6.4M Shares in Private Transaction

November 27 -- Details have now emerged on a large sale of Generac Holdings common stock.

Just a few days after the company pulled an 11.5 million share secondary offering due to market conditions, rumors surfaced last night that a new secondary was in the offing.

It now appears that the large share sale was made in a private market sale by large holder CCMP Capital.

CCMP Capital is effecting a rule 144 trade, selling 6.4 million shares at $32.25.

CCMP Capital was original planning on selling shares in the pulled secondary.

CPSC, Toro Recall Riding Mowers Due to Fire Hazard

WASHINGTON, D.C. – November 27 -- The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Toro® Z Master® Riding Mowers

Units: About 2,600 in the U.S. and 31 in Canada

Manufacturer: The Toro Co., of Bloomington, Minn.

Hazard: The traction drive belt can wear through the mower's fuel tank and cause fuel to leak, posing a fire hazard.

Incidents/Injuries: Toro has received five reports of incidents. No injuries have been reported.

Description: This recall involves 2012 Toro Z Master Commercial 2000 Series ZRT riding mowers. The mowers are red and black. "Toro" and "2000 Series" are printed on the side and "Z Master Commercial" on the front of the mowers. The model and serial numbers are on a metal plate located at the front of the mower, below the seat, on the left-hand side. The following models and corresponding serial numbers are included in this recall: model number 74141 with serial numbers ranging from 312000101 to 312000784; model number 74143 with serial numbers ranging from 312000101 to 312000887; and model number 74145 with serial numbers ranging from 312000101 to 312001178.

Sold at: Toro dealers nationwide from January 2012 through August 2012 for between $7,700 and $8,700.

Manufactured in: United States

Remedy: Consumers should stop using the recalled mowers immediately and contact a Toro dealer to schedule a free repair and/or to check if the repair has already been made to the mower. Toro has contacted registered owners of the recalled mowers.

Consumer Contact: Toro; toll-free at (855) 493-0090, from 8 a.m. to 5 p.m. CT Monday through Friday, or online at www.toro.com and click on Product Recall Information on the bottom right-hand side of the page for more information.

Generac Investors Withdraw Secondary Offering

•         Board and senior management withdraw plans for secondary offering of shares due to market conditions
•          Shares jumped 7% to $34.26 after hours
•         Stock had fallen 9.3% in regular-session trading after Generac earlier unveiled plans for an offering

November 26 -- Generac Holdings Inc. (GNRC) said its biggest shareholder and members of the company's board and senior management have withdrawn plans for a secondary offering of shares due to market conditions.

The generator manufacturer's shares jumped 7% to $34.26 after hours. The stock had fallen 9.3% in regular-session trading after Generac earlier Monday unveiled plans for an offering of about 11.5 million shares on behalf of the selling stockholders, following a recent runup in price.

According to FactSet, CCMP Capital Advisors LLC holds about 59%, or 39.9 million, of Generac's shares. Generac, which is the leading maker of standby residential-backup generators, had been billed as a big winner from the recent destruction caused by superstorm Sandy.

After experiencing strong demand following two major East Coast storms in 2011, the company's stock took a boost in early November from the expectation of a fresh surge in orders, as millions in the Northeast coped with the hardship of living without electricity.

Generac's residential generators, which run on natural gas or propane, are more expensive than portable gasoline or diesel-powered units, but have the advantage of immediately and automatically firing when power fails. They also run more quietly than portable units, which have the added disadvantage of running on fuel that can be scarce after a storm.

However, Generac's stock has tended to slip in the past after rising sharply on natural disasters.

Through the close, the stock has climbed 44% over the past three months.

Generac to Buy Mexican, Brazilian Businesses

Acquisition of leading Latin American generator manufacturers accelerates global expansion efforts – Businesses provide an enhanced platform and immediate scale for future international growth

November 20 – WAUKESHA, WIS. — Generac Holdings Inc., a leading designer and manufacturer of back-up power generation products, announced today 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, (collectively “Ottomotores”) for $46.5 million in cash, subject to certain closing net asset adjustments.

Founded in 1950 and headquartered in Mexico City, Ottomotores Mexico is a leading manufacturer of power generation equipment in Mexico and other parts of Latin America. Ottomotores Brazil, located in Curitiba, recently entered the Brazilian market and has been steadily gaining traction in one of Latin America's fastest growing markets. The combined Ottomotores businesses have more than 500 employees and generated revenues of $81.6 million in fiscal 2011.

“Ottomotores is a terrific strategic fit for Generac’s business, providing immediate scale for our international expansion efforts,” said Aaron Jagdfeld, President and Chief Executive Officer of Generac. “This acquisition is directly in line with our Powering Ahead strategic plan and positions Generac to participate in the significant global market that exists for commercial and industrial backup power generation by offering products tailored to the needs of customers in individual international markets.”

The acquisition of Ottomotores provides a platform for future growth in additional markets outside North America through Ottomotores’ broad product offering of higher output power products and strong, established distribution network.

“We at Ottomotores are very excited about this transaction,” said Francisco Haro, Managing Director of Ottomotores Mexico. “With both companies having a long history in their own markets and deep expertise in the backup power generation business, we believe that there are many synergies and opportunities to grow with the combination of these companies.”

“We welcome the entire Ottomotores team to the Generac family,” said Jagdfeld. “We are looking forward to working closely together with such an experienced management team to create a formidable backup power generation company serving global markets.”

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.

About Generac

Since 1959, Generac has been a leading designer and manufacturer of a wide range of generators and other engine powered products. As a leader in power equipment serving residential, light commercial, industrial and construction markets, Generac's power products are available through a broad network of independent dealers, retailers, wholesalers and equipment rental companies. The Company markets and distributes its products primarily under its Generac and Magnum brand names.

About Ottomotores UK Limited

Ottomotores is a leader in the manufacture of generating sets in Mexico and Latin America with exports to Middle East, Far East, and Africa. Manufacturing generator sets in the range of 15kW up to 2500kW for standby application as well as prime power or continuous running, Ottomotores has a broad product offering to meet any application or specification. For more information on Ottomotores, please visit http://www.ottomotores.com.mx.

American Honda Recalls Portable Generators

WASHINGTON, D.C. – November 15 -- The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

 Name of Product: Portable Generators

Units: About 150,600

Distributor: American Honda Motor Co. Inc., of Torrance, Calif.

Hazard: The generator’s fuel hose can leak, posing fire and burn hazards.

Incidents/Injuries: Honda is aware of four incidents of fuel leaks. No fires or injuries have been reported.

Description: This recall involves Honda gasoline-powered portable generators with model number EU2000i and serial numbers EAAJ-2260273 through EAAJ-2485025. The generators are black and red in color or have a camouflage design. They measure about 20 inches long by 11 ½ inches wide by 16 ½ inches tall. “Honda,” “EU converter” and the model number 2000i are printed on the side of the generator. “Companion” is printed on the side of some EU2000i models. The serial number is located on the lower right side, rear corner of the generator.

Sold at: Honda Power Equipment dealers, Camping World, Gander Mountain, Grainger, Hertz Rental, John Deere, National Pump and Compressor, Northern Tool, Scheels Sporting, Sportsman’s Warehouse, Sunbelt Rentals, True Value, United Rentals, White Cap and Wholesale Sports store nationwide and online from October 2011 through September 2012 for between $1,150 and $1,400.

Manufactured in: Japan

Remedy: Consumers should immediately stop using the recalled generators and contact the nearest Honda Power Equipment dealer to schedule a free inspection and repair.

Consumer Contact: American Honda; Phone toll-free (888) 888-3139, 8:30 a.m. to 5 p.m. ET Monday through Friday, or online at http://powerequipment.honda.com and click on “Recalls and Updates” under “Service and Support” for more information.

Kawasaki Motors Recalls Fuel Filters

Washington, DC -- November 15 -- The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product.  Consumers should stop using recalled products immediately unless otherwise instructed.  It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Fuel Filters and Tune-Up Kits with Fuel Filters

Units: About 55,000 filters and about 1,200 tune-up kits

Manufacturer: Kawasaki Motors Corp. USA of Grand Rapids, Mich.

Hazard: The fuel filter can leak, posing a fire hazard.

Incidents/Injuries: Kawasaki has received 110 reports of fuel leaks in lawn mowers, including two reports of leaks from replacement filters. No injuries reported.

Description: The recalled fuel filters are white translucent plastic and attach to the fuel tubes on Kawasaki lawn mower and utility vehicle engines. The filters were sold separately and as part of engine tune-up kits. “VISU Filter” and a manufacturing date code number are on the top of the filter. The following date codes are included in this recall: 136/11 through 365/11 and 001/12 through 216/12. The tune-up kits say “Kawasaki Engine Tune-Up Kit” on the box. A part number is located on the top of the box. Recalled tune-up kits include one of the following part numbers: 99969-6189, 99969-6190, 99969-6191, 99969-6196 and 99969-6220.

Kawasaki Motors is recalling lawn mowers and utility vehicles that use this filter, also.

Sold at: Kawasaki dealers nationwide between August 2011 and August 2012. Filters cost about $5; tune-up kits cost between $40 and $70.

Manufactured in: U.S.

Remedy: Consumers should immediately stop using products with the recalled fuel filters and contact Kawasaki or a Kawasaki dealer for a free repair.

Consumer Contact: Kawasaki Motors; toll-free at (866) 836-4463, 8 a.m. to 5 p.m .ET Monday through Friday, www.kawpower.com or e-mail ffrecall@kmc-usa.com

Note: Health Canada also has a press release on this recall which is available at http://cpsr-rspc.hc-sc.gc.ca/PR-RP/recall-retrait-eng.jsp?re_id=1720

Kawasaki Motors Recalls Lawn Mower Engines

WASHINGTON, D.C. – November 15 -- The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Lawn Mower Engines

Units: About 210,000

Manufacturer: Kawasaki Motors Corp. USA of Grand Rapids, Mich.

Hazard: The fuel filter can leak, posing a fire hazard.

Incidents/Injuries: Kawasaki Motors has received 110 reports of fuel leaks. No injuries reported.

Description: This recall includes Kawasaki FH, FR, FS and FX series engines used in riding and wide area, walk-behind lawnmowers made and sold under the following brand names: Ariens, Bad Boy Mowers, Big Dog, Bob-Cat, Bush Hog, Country Clipper, Cub Cadet, Dixie Chopper, Dixon, DR Power Equipment, Encore, Exmark, Ferris, Gravely, Hustler, Husqvarna, Land Pride, SCAG, Simplicity, Snapper Pro, Tiger Corp, Toro, Worldlawn and Woods. Engines may have also have been bought separately and used in other lawn mowers. Recalled engines are 13 to 36 horsepower, air-cooled, v-twin engines. “Kawasaki” and the model number are printed on the top of all of the engines. In addition, the spec and serial numbers are printed on a label on one side of the engine.

The following model, spec and serial numbers of engines being recalled can be found at this Web Site: http://www.cpsc.gov/cpscpub/prerel/prhtml13/13040.html        

Kawasaki Motors is recalling the filters used in these lawn mower engines and utility vehicle engines that use the recalled filters, also.

Sold at: Authorized Kawasaki small engine dealers and lawn and garden equipment retailers nationwide. Recalled units were sold between October 2011 and August 2012 for between $2000 and $10,000.

Manufactured in: U.S.

Remedy: Consumers should immediately stop using mowers with the recalled engines and fuel filters and contact Kawasaki or a Kawasaki dealer for a free repair.

Consumer Contact: Kawasaki Motors; toll-free at (866) 836-446, from 8 a.m. to 5 p.m. ET, Monday through Friday, or online at www.kawpower.com or e-mail the firm at ffrecall@kmc-usa.com for more information.

Note: Health Canada also has a press release on this recall which is available at http://cpsr-rspc.hc-sc.gc.ca/PR-RP/recall-retrait-eng.jsp?re_id=1721

Powermate Generators Recalled by CPSC and Pramac America

WASHINGTON, D.C. – November 13 -- The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Powermate Sx 5500 portable generators

Units: About 7700

Importer: Pramac America LLC, of Kearney, Neb.

Manufacturer: Am Pride Chongqing Senci IMP and EXP Trade Co., of China

Hazard: The fuel filter on this generator allows gasoline to leak, posing a fire hazard.

Incidents/Injuries: Pramac America has received 51 reports of fuel filter leakage. No fires or injuries have been reported.

Description: The recalled portable generators have "Powermate 5500" printed on the side of the black generator with wheels. These generators were sold under the model name Sx5500 and model number PM0125500. Both are printed on a plate on the rear of the generators with serial numbers of the recalled units ranging from K003xxxxxQ through K090xxxxxQ.

Sold exclusively at: Home Depot stores in northeast, mid-west and southeast United States from February 2012 through August 2012 for about $550.

Manufactured in: China

Remedy: Consumers should stop using these recalled portable generators and contact Pramac America to receive a free repair kit including a replacement filter, hose and hose clamps for fuel line.

Consumer Contact: Pramac America LLC at (800) 445-1805 from 7 a.m. to 5 p.m. CT Monday through Friday or www.powermate.com and click on the Generator tab and then the Expert Advice followed by the Service Notification link for more information.

Husqvarna Group Plans Cost Structure Improvements

November 7 -- Husqvarna Group plans measures to improve the Group's cost structure. The measures include layoffs in several countries, including Sweden.

The proposed measures include a reduction of approximately 600 employees, whereof almost half are in Sweden, mainly in Huskvarna.

"I regret that we have to reduce the number of employees. The proposed measures aim to improve efficiency, reduce the fixed cost base and further increase flexibility," says Hans Linnarson, President and CEO of the Husqvarna Group. He continues: "Even though we make reductions in Huskvarna, it will continue to be a very important unit to us."

Measures are planned to be implemented during the first six months of 2013 after negotiations with the respective unions. Cost savings will be achieved gradually and full annual effect of around SEK 220m will be reached during 2014. For 2013 cost savings are estimated at around SEK 160m. Costs for implementing these measures are estimated at approximately SEK 250m, which will be charged to the operating income for the fourth quarter of 2012.

In addition to the above, the Group will during 2013 also benefit from cost savings of around SEK 50m. The savings relate to measures under previously announced restructuring, including relocation of manufacturing from Sweden to Poland, which began in 2010.

Briggs and Stratton Buys Brazilian Rival

$60-Million Purchase Of Branco Expands Geographic Footprint

November 6 -- Briggs and Stratton Corporation has an agreement in place to acquire a Brazilian rival, Companhia Caetano Branco, for approximately $60 million dollars. Branco produces a range of outdoor power equipment, including generators, water pumps, and light construction equipment that are sold through its own network of more than 1,200 dealers across Brazil.

The sale will be subject to post-closing adjustments, but Briggs and Stratton indicated it expects to finalize the purchase within four months.

"This acquisition brings two great companies with incredible brand strength together,” stated Todd Teske, president and CEO of Briggs and Stratton. “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."

While Briggs and Stratton increases its footprint abroad, it has been adjusting its domestic production capacity in line with changes in demand. Its small engine production has been reassigned to operations in China, and two U.S. lawn mower plants have been consolidated.  A plant in Alabama has been reorganized for a single product, V-twin engines for riding mowers.

Milwaukee-based Briggs and Stratton is the world's largest producer of gasoline engines for outdoor power equipment. Its Briggs and Stratton Power Products Group LLC subsidiary is North America's largest distributor of portable generators and pressure washers, and designs and manufactures standby generators and lawn-and-garden equipment.

Briggs and Stratton stated it would finance the transaction with available cash and/or existing credit facilities.

"This is a very positive outcome for Branco customers and Briggs and Stratton,” stated Denise Remor, Branco CEO. “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 and Stratton."

"We view this acquisition very positively for Briggs and 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," according to Teske.

A Sales Surge for Generator Makers

WHITEWATER, Wis.—November 6 -- In the days before Superstorm Sandy slammed into the East Coast, Generac Holdings Inc. Chief Executive Aaron Jagdfeld accelerated the company's distribution operations, emptying the company's warehouse of generators for big-box retailers and the company's dealers.

At the same time, Generac opened the throttle on the company's production of consumer-level generators to replenish the truckloads of generators streaming away from the company's distribution center.

"This is the first time since we became a public company [in 2010] that we experienced something of this magnitude," said Mr. Jagdfeld in an interview.

Generac's main competitors in the emergency-generator market, Kohler Co. and Milwaukee-based Briggs and Stratton Corp., BGG +2.09% experienced a similar surge in storm-related demand.

"We have absolutely ramped up to meet the demand in the short-term and the demand we anticipate in the future," said Todd Teske, chief executive of Briggs and Stratton.

Immediately before and after Sandy's onslaught, manufacturers concentrated on supplying portable gasoline-powered generators. But in the storm's aftermath, Generac, Briggs and Stratton and Kohler, based in Kohler, Wis., are emphasizing permanent residential generators, which are wired directly to an electrical system and activate automatically when there is a loss of power. It is a market the companies are counting on to generate significant growth. Manufacturers believe that prolonged power outages following Sandy will transform homeowners' view on permanent generators to a necessity rather than a luxury item.

"It's basically people saying: 'I never want this [power outage] to happen again.' The awareness of it really changes behaviors," said Melanie Tydrich, Kohler's senior channel manager of residential generators.

Generac alone accounts for 70% of the permanent-residential-generator market. With Kohler and Briggs and Stratton, the three companies combined account for 90% of the U.S. market.

"There's a unique opportunity to really turn this into a big market," said Mr. Jagdfeld of Generac, whose shares jumped more than 20% when U.S. stock markets reopened Oct. 31. "We've got to be thinking bigger," he added.

Before the storm, Generac, based in Waukesha, Wis., was only using about two thirds of its production capacity. Mr. Jagdfeld expects production lines to be running full steam over the coming weeks.

The company expects to hire at least 100 more temporary and permanent workers over the next 60 days to boost production, lifting its workforce by about 5% to 2,300 people.

To relieve the expected stress on its existing assembly lines, Mr. Jagdfeld said the company will begin using 250,000 square feet of factory space in Wisconsin acquired this summer. It also began building its own alternators in Wisconsin last year after relying on a contract manufacturer in China for several years.

"We're controlling more of the critical components of our generators, which helps us react very quickly to an increase in demand," said Tim Hearden, Generac's vice president of operations.

Unlike portable generators that transmit electricity to lights and appliances through plug-in extension cords, a permanent standby generator is wired directly to a home's electrical system. The generator consists of two main components: an engine and an alternator. The engine causes the alternator to rotate, creating electricity.

The engines draw fuel from a home's natural-gas line or a liquid propane tank, allowing the generators to operate uninterrupted for days. The cost of a generator depends on its power output, but most residential generators average $5,000 to $8,000, including installation.

Just 1.25 million U.S. households have permanent generators, or 2.5% of the 50 million homes that Generac estimates as the potential size of the permanent-residential-generator market.

Adding one percentage point to the penetration rate of permanent generation would represent 500,000 additional homes. Industry analysts say this growth is achievable, given that the market size was below 2% five years ago. Industry sales of home generators have been growing about 17% a year.

Moreover, each point of market growth creates an opportunity for about $2 billion of new revenue. With Generac's 70% share of the permanent-standby-generator market, the company would be in line to capture about $1.4 billion from each percentage point of industry growth. That is nearly 2.5 times greater than analysts' revenue forecast for Generac's permanent-residential-generator business this year.

For homeowners still without power though, buying a permanent standby generator won't bring immediate relief. An electrical contractor is needed to install the backyard units, which typically require multiple permits to comply with municipal building codes.

Joann Davi, vice president of Long Island Emergency Power, a Generac dealer and installer in Deer Park, N.Y., predicts her company will have steady work for the next two years based on the orders and the hundreds of inquiries about permanent residential generators she received in the past two weeks.

"They're becoming more common because on Long Island we're surrounded by water and overhead power lines," she said.

 professional.wsj.com