Yahoo Finance Generac (GNRC) Boosts BESS Portfolio With PowerPlay Buyout
Generac Holdings GNRC recently acquired a division of SunGrid Solutions Inc. — PowerPlay Battery Energy Storage Systems. PowerPlay is one of the leading providers of turnkey battery energy storage systems (BESS) solutions specifically built for commercial and industrial (C&I) initiatives up to 7 MWh.
The need for energy storage solutions is driven by several key factors, including the growing adoption of distributed solar, increased electrification of C&I facilities and increasing utility rates. Moreover, the potential for fluctuations in the central grid due to bad weather, blackouts, or infrastructure challenges can lead to an increased need for energy storage.
Battery energy storage systems play a critical part in enabling C&I businesses to develop robust, competent and sustainable on-site distributed energy systems. Therefore, BESS systems up to 7 MWh usually find their usage in multiple C&I enterprises, such as retail stores, restaurants, office buildings, manufacturing facilities and healthcare facilities.
The acquisition is likely to bolster Generac's ability to offer an end-to-end suite of products and solutions to its C&I customers, empowering them to achieve their energy goals with a strong focus on resilience, efficiency and sustainability, stated GNRC.
The PowerPlay business will continue to run its operations from Cambridge, Canada. It will also serve as a research and development facility for Generac's C&I BESS solutions. On the other hand, SunGrid Solutions will continue its energy storage EPC operations across the United States and Canada, emphasizing solutions ranging from 10 MWh to 1 GWh.
The terms of the deal, settled on Jun 26, 2024, remain undisclosed.
Headquartered in Waukesha, WI, GNRC is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.
Besides its aggressive acquisition strategy to strengthen its footprint in the commercial and industrial battery energy storage systems market, Generac’s innovative solution offerings continue to elevate customer experiences. In May 2024, one of Generac’s acquired companies, ecobee, unveiled an enhanced grid resiliency program to mitigate power outages caused by extreme weather, sustained high heat and natural disasters.
Before that, Generac’s subsidiary Mean Green upgraded its commercial-grade electric mower lineup with the introduction of EVO 96. The EVO 96 is driven by lithium batteries and has a 96-inch mulching rear discharge deck. Management noted that the deck design ensures that 80% of grass clippings are mulched while 20% are discharged to create a clean and even turf.
In the last reported quarter, Generac posted revenues of $889.3 million, up from $887.9 million in the prior-year quarter. The uptick was driven by healthy growth in Residential product sales. The top line beat the consensus mark by 0.4%.
At present, GNRC carries a Zacks Rank #3 (Hold). The stock has lost 7.8% in the past year compared with the industry’s decline of 5.8%.
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