As previously reported, Generac Power Systems expressed interest in bidding on Briggs & Stratton in mid-August. However, the company, which competes with Briggs on some products lines, did not submit a bid by the Aug. 28 deadline, reports the Milwaukee Business Journal.
In addition, no other prospective buyers submitted qualified bids by the deadline, and it appears Briggs will likely be sold to baseline bidder KPS at $550 million for nearly all of Briggs & Stratton’s assets. The Business Journal reports that a hearing on the sale is scheduled for Sept. 15 and an attorney for the official unsecured creditors committee said the committee will challenge the proposed sale.
Tom Hayes, an analyst with Northeat Research in Cleveland, Ohio, told the paper that it’s possible that Generac wasn’t interested in all of Briggs’ assets. For instance, Generac likely was only interested in products that would have complemented and extended its offerings but wasn’t interested in Briggs’ small gas-powered engine products that are aimed at the residential market, for example.
For more information, you can read the full article here.
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