Expanding their reach even further into the OPE market, Briggs & Stratton acquires Ground Logic. Ground Logic manufactures stand-on fertilizer spreaders and sprayers, made with mostly stainless steel. Briggs acquired the assets of Ground Logic on December 11, 2017 in Milwaukee, WI.
Briggs & Stratton Acquires Ground Logic Assets
It seems that the deal is done and the transaction was closed the same day, on December 11. It’s reported that none of the employees are going with the Ground Logic side of the company to Briggs. They will all be retained, but with old business side. No word on the amount of the acquisition, yet.
As stated above, only the assets were acquired, and Briggs & Stratton didn’t reveal the terms of the acquisition. It is stated that Briggs & Stratton acquires Ground Logic with cash on hand, so it is a cash deal. Furthermore, Briggs states that due to the deal being cash, this should not have a large impact on 2018 cash flow, nor profits.
Ground Logic Innovation
Ground Logic was more than just a tyipcal fertilizer spreader company. Their machines have a very industrial look, due to the large composition of stainless steel. Ground Logic has been very innovative in the spreader and sprayer market, hence it shows by just looking at their equipment.
Interestingly enough, still on the Ground Logic site , they state: “Our Advantage – All of our machines are built from 100% stainless steel and utilize commercial grade Honda engines and Peerless transmissions.” Something tells us that the engines may be the first to change.
“This acquisition supports Briggs & Stratton’s strategy to ‘fill out the trailer’ of the commercial lawn and turf professional, with highly-regarded products that are built to stand up to the toughest working demands,” said Harold Redman, senior vice president and group president – Turf & Consumer Products at Briggs & Stratton. “We will be able to use our industry-leading global distribution network to accelerate growth and are eager to add these products to our portfolio of outdoor power equipment to help commercial business owners get the job done.”
Our Thoughts
Briggs & Stratton continues to purchase companies in both horizontal and vertical ventures. They’re not just about engines and mowers. As Redman mentioned, this latest Ground Logic acquisition gives another platform that give Briggs an even wider platform. We have to believe, that in the end, Briggs & Stratton wants and needs to sell more engines. And, this should be all new business, since Ground Logic was using all Honda motors. Time will tell whether the Spreaders and Sprayers remain innovative and made of stainless steel, or if they quickly become stramped-steel manufactured units.
