| Type | Public (NYSE: GNRC) |
|---|---|
| Industry | Manufacturing |
| Founded | 1959[1] |
| Founder(s) | Robert Kern[2] |
| Headquarters | Waukesha, Wisconsin[3] |
| Key people | Aaron Jagdfeld, CEO[3] |
| Products | Generators |
| Revenue | $593 million (2010[4] |
| Employees | 1,500[3] |
| Parent | Generac Holdings, Inc. |
| Website | www.generac.com |
Generac Power Systems (NYSE: GNRC) is a manufacturer of backup power generation products serving residential, light commercial and industrial markets.[5] Generac’s power systems range in output from 800 watts to 9 megawatts[6], and are available through independent dealers, retailers and wholesalers.[5] Generac is headquartered in Waukesha, Wisconsin[3] (southeastern Wisconsin) and also has manufacturing facilities in Eagle, Wisconsin and Whitewater, Wisconsin, for a total of more than 997,000 square feet (92,600 m2) of manufacturing space.[6] A 137,000 square feet (12,700 m2) facility in Maquoketa, Iowa has never been fully used for manufacturing and is now being leased and used for inventory.[6]
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Founded in 1959, soon began producing portable generators for Sears, Roebuck and Co. under the Craftsman brand. During the 1970s, Generac expanded its offerings in the portable and recreational vehicle markets, and the company entered the commercial and industrial markets (specifically backup power generation systems) in the 1980s.[6]
By end of the 1980s, the company was manufacturing residential, commercial and industrial generators, and in 1989, Generac introduced the first gaseous-fueled automatic home standby system.[6]
In 1992, Generac began private labeling generator sets for Caterpillar, Inc. As the partnership grew between the two companies, they discussed a potential acquisition of Generac by Caterpillar, although a deal was never finalized. In June 1996, Caterpillar decided to terminate the private labeling agreement. Generac then sued Caterpillar under the Wisconsin Fair Dealership Law ("WFDL"), the Sherman Act, the Wisconsin common law concerning restrictive covenants, and the Illinois Consumer Fraud and Deceptive Business Practices Act.[7] The federal district court, in two separate orders, disposed of the action in Caterpillar's favor. Generac then challenged the lower court's rulings in the U.S. 7th Circuit Court of Appeals, which ruled that Generac's claims were properly dismissed by the lower court.[8] Generac continued to supply some transfer switches to Caterpillar until 2002, when Caterpillar changed suppliers.
In 1998, Generac sold its portable products division to the Beacon group, a private equity firm, who later sold it to Briggs & Stratton Corporation.[6] Upon expiration of a non-compete agreement related to the sale in 2007, Generac re-entered the portable generator market in 2008.[6]
In late 2006, Generac was purchased by CCMP Capital, New York, N.Y.[6] In 2009 CCMP took a write-off, described as a non-cash goodwill and trade name impairment charge, of $583.5 million against their purchase of Generac.[9]
Aaron Jagdfeld was appointed president and chief executive officer of Generac Power Systems in September of 2008.[6] He has worked for the company for 15 years and is the current CEO.[6]
On February 11, 2010, Generac Holdings Inc. (NYSE: GNRC), parent company of Generac Power Systems, Inc., began trading on the New York Stock Exchange Generac shares trade under the ticker symbol GNRC.[6] The initial public offering provided $224 million in net proceeds, which were used to pay down debt.[6]
It is the multiple recipient of Milwaukee Magazine’s “Best Places to Work” award for Southeastern Wisconsin.
Generac's industrial sizing application, Power Design Pro, received silver in the 2010 Plant Engineering "Product of the Year" award.[10]
The company has also earned the Good Housekeeping Seal for its Guardian Series home standby generators as well as several portable generators.
Generac manufactures gaseous-fueled, diesel-fueled and Bi-Fuel engine-driven power generation equipment, modular paralleling systems, automatic transfer switches and small engines.[5] The company supplied products to the industrial, commercial, portable and RV generator markets.[5]
In December 2009, Generac introduced Generac Industrial Power (a rebranding of its industrial products division) to include new engines, new enclosures, ergonomic changes and aesthetic changes. This included a partnership with Fiat Powertrain Technologies to supply Generac with industrial diesel engines for use in industrial generators.[11]