Unsatisfied with an 80% market share in the home generator business, CEO Aaron Jagdfeld has big ideas for home microgrids.
n 2008, things were looking grim for Generac. The 49-year-old firm, which makes natural-gas-powered backup generators, had been acquired a couple of years earlier by CCMP Capital, a New York City private equity shop. To buy out the 81-year-old founder’s 70% stake, CCMP had loaded up the Milwaukee-based firm, which had just $700 million in sales, with $1.4 billion in debt.
The young bean counter had a surprising solution: Get more aggressive. After buying in some debt at 50 cents on the dollar, he took the company public in 2010 and began a string of acquisitions . First, he bought into peripheral businesses such as cellphone transmission and outdoor light towers.
Over the 12 months ended March 30, the company did $4.1 billion in sales and $1.8 billion in gross profit—both double prepandemic levels. Non-generator sales now account for 20% of revenue. Since the company went public at $13 a share, Generac stock has been on a wild ride. It spiked to an incredible $498 last October and is now back at $250—still a hefty 33 times trailing earnings per share. Debt is a manageable 6% of enterprise value, compared to 80% after the IPO.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
McCowan makes late go-ahead layup, Wings beat Aces 82-80Teaira McCowan made a go-ahead layup with 11.4 seconds left to help the Dallas Wings beat the Las Vegas Aces 82-80 on Thursday night.
Read more »
Indiana State Police vehicle struck by DUI driver on I-80; 2 troopers sent to hospitalTwo troopers were sent to the hospital after a DUI driver struck a squad car on Interstate 80 Saturday morning.
Read more »
KSAT 9@Night: 80 dogs evacuated after business catches fire, standoff going on 2 days on far North SideHosted by Nightbeat anchor Stephania Jimenez, KSAT’s “9 at Night” is a bite-sized newscast that focuses on the things you care about most.
Read more »
Tinley Park gives tentative OK to Residence Inn, Courtyard by Marriott near I-80/La Grange RoadThe company will spend $36 million on a Residence Inn and Courtyard by Marriott on about 9 acres south of 183rd Street at White Eagle Drive, just east of La Grange Road.
Read more »
Massive fire at NW Side business leads to evacuation of 80 dogs at nearby facility, SAFD saysA massive fire at a Northwest Side generator business prompted a large emergency response and led to the evacuations of 80 dogs at a nearby kennel.
Read more »