Briggs & Stratton Corp. will divest certain assets to simplify the organization and focus on its engine applications.
As a result of careful analysis of market dynamics and opportunities, the company will be repositioning to focus its businesses with expected annual sales of approximately $1 billion in the design, production and sale of Briggs & Stratton residential engines; Vanguard commercial engines, which has experienced sustained high growth and market share gains; Briggs & Stratton standby power generation, in which it maintains the number two position in North America; and Vanguard commercial battery systems, where it is a pioneer in commercializing electrification for a broad range of commercial applications.
The company is prioritizing divesting the turf products business headquartered in the U.S. and the pressure washer and portable generator product lines. The turf products business headquartered in the U.S. includes equipment sold under the Ferris, Billy Goat, Simplicity, Snapper and Snapper Pro brands.
“We are pursuing a repositioning of the company to simplify our portfolio around our foundational expertise in power application,” Todd Teske, chairman, president and CEO remarks. “This action gives us an opportunity to streamline and optimize our corporate infrastructure to support higher profitability, as well as to strengthen our balance sheet with proceeds from the divestiture of strong, yet non-core, assets. Throughout this process, our mission has remained the same: to provide power to people to make work easier and improve lives. We will do this by providing innovative and diverse power solutions and a superior support network.”
Management has also updated its long-term financial targets to include 2-4% organic sales growth with focused growth areas exceeding 10% organic sales growth.