Acquisitions and Financial Overview
CAPITAL DEPLOYMENT
PRIORITIES
2018-2020 $
1
Organic I Invest in technology, innovation, and R&D capabilities
Asset Lite
~170m
Growth
I Capacity expansion; Global systems; High ROI automation
23
I Target 2-3x leverage
Pay Down
I Term Loan matures 2026, ABL matures 2023
Debt
I $500mm notional swapped fixed
Deleveraging
Story
~85m
GENERAC
I Demonstrated ability to execute; 17 deals since 2011
M&A
I Accelerates "Powering Our Future" strategic plan
Accelerate the
strategy
~240m
I Seek high synergy opportunities with above WACC returns
4
Return of
Capital
I As future cash flow permits, will evaluate options opportunistically
Opportunistic
~25m
I $250mm remaining on current share repurchase authorization
Strong balance sheet and cash flow generation enables disciplined
and balanced approach toward capital deployment that creates
value for shareholders
TOTAL
~520m
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