(By Balaseshan) Briggs & Stratton Corp. (NYSE: BGG), a producer of gasoline engines for outdoor power equipment, said it has bought Companhia Caetano Branco of Brazil for about $57 million in cash for the stock of the company, adjusted for certain liabilities.
Briggs & Stratton, headquartered in Milwaukee, Wisconsin, financed the transaction from cash on hand. The acquisition is not anticipated to have a significant impact on sales or earnings in fiscal 2013.
"This acquisition brings two great companies with incredible brand strength together. It is also another step in executing our strategy to expand in developing regions of the world in order to diversify both our product portfolio and our geographic footprint," said Todd Teske, President, Chairman and CEO of Briggs & Stratton.
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Founded in 1936, Branco provides outdoor power equipment used primarily in light commercial applications in Brazil.
Branco's products including generators, water pumps, and light construction equipment are sold through its independent network of over 1200 dealers throughout Brazil. Branco employs approximately 150 people in Brazil.
"We view this acquisition very positively for Briggs & Stratton and for all of the stakeholders in each entity – employees, customers and shareholders," said Todd Teske.
Briggs & Stratton designs, manufactures, markets and services these products for original equipment manufacturers (OEMs) worldwide. In addition, the company markets and sells related service parts and accessories for its engines.
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The company manufactures, markets generators, pressure washers, snow throwers, lawn and garden powered equipment (primarily riding and walk behind mowers) and related service parts and accessories. It operates in two segments: Engines and Power Products.
BGG is trading up 0.35% at $20.21 on Monday. The stock has been trading between $14.90 and $20.86 for the past 52 weeks.