Briggs & Stratton to Acquire Victa Lawncare in Australia
Briggs & Stratton Corporation announced June 3 that it signed a definitive agreement to acquire Victa Lawncare Pty. Ltd. of Sydney, Australia from GUD Holdings Limited for a total consideration of $22 million in cash, subject to adjustments. Briggs & Stratton’s subsidiary Briggs & Stratton Australia Pty. Limited is a party to the transaction.
Victa Lawncare is a leading designer, manufacturer and marketer of a broad range of outdoor power equipment used in consumer lawn and garden applications in Australia and New Zealand. Its products are sold at large retail stores and independent dealers. Victa Lawncare had net sales of $56 million for the nine months ended March 31, 2008, and anticipates net sales of approximately $64 million for the 12 months ending June 30, 2008.
Briggs & Stratton anticipates financing the transaction from cash on hand and/or its existing credit facilities. It expects that the acquisition will have no material effect on earnings in fiscal 2009. Cost synergies from the transaction are expected to be modest.
Completion of the transaction is subject to conditions customarily associated with a transaction of this type. The transaction is targeted for closing at the beginning of Briggs & Stratton’s fiscal 2009 first quarter, at which time Victa Lawncare will become a subsidiary of Briggs & Stratton Australia Pty. Limited.
“The acquisition brings together two of the leading companies in outdoor power products in Australia and New Zealand, and allows each company to continue to employ its core competencies,” said Todd Teske, executive vice president and chief operating officer of Briggs & Stratton Corporation. “Briggs & Stratton will continue to focus on supplying engines to consumer and commercial power customers in Australia and New Zealand, and Victa Lawncare will continue to manufacture and market lawn mowers for its customers.”
“This is a very positive outcome for Victa customers and for Briggs & Stratton,” said Ian Campbell, GUD Holdings’ managing director. “The Victa business has benefited from low-cost components, new-product development, and broader distribution strategies in recent years. Victa’s brand strength and current operational performance can only add to the strength of a company like Briggs & Stratton.”