Another big step for Briggs & Stratton: acquisition of Simplicity continues company's evolution as engine-powered equipment supplier

Like anything else, companies evolve over time. But seldom has an evolution been quite as swift and dramatic as that of Briggs & Stratton Corp.

When the Milwaukee-based engine manufacturer announced in early June that its subsidiary, Briggs & Stratton Power Products LLC, had reached an agreement to acquire Simplicity Manufacturing Inc. (SMI), it was more than just the second largest acquisition in the company's 96-year history. Instead it was just the latest--and easily the most significant--move in the company's evolution toward becoming an integrated manufacturer of engines and engine-powered equipment for both commercial and consumer markets.

First the details. Briggs & Stratton will acquire Port Washington, Wis.-based Simplicity for approximately $227.5 million in cash, subject to adjustments. Simplicity manufactures more than 150 models of premium outdoor power equipment for both consumer and commercial applications, including Simplicity and Snapper consumer mowers, Snapper Pro and Ferris commercial mowers and Giant-Vac leaf and debris handling equipment (see related story). For the 10 months ending April 30, SMI had net sales of $285 million and anticipates net sales of approximately $350 million for the 12 months ending June 30, 2004.

The transaction is expected to be completed this mouth. While the Simplicity operations will become part of Briggs & Stratton's Power Products group, the Simplicity management reran, including CEO James A. Wier, will remain in place.

"The acquisition is another step in Briggs & Stratton's strategy to present an evermore compelling value proposition to consumers of our products and superior returns to our shareholders," said Briggs & Stratton CEO, John S. Shiely. "We continue to look for different opportunities that allow us to grow our business and achieve our objective of providing operating returns that am excess of our cost to capital. We believe the acquisition of Simplicity Manufacturing aligns with this goal very nicely.

"Simplicity is a solid company with several compelling brands, a strong position in the retail dealer channel for outdoor power products and superior product development capabilities. We look forward to utilizing these assets to further our high-value integration ell forts with our traditional OEM customer base for mutual benefit."