PSIX acquisition

Power Solutions International, Inc. (PSIX), a leader in the design, engineering and manufacture of emissions-certified alternative-fuel and conventional power systems, is pleased to announce that it has acquired Buck’s Engines, LP (“Buck’s”), a manufacturer of alternative-fuel engines for industrial markets. Buck’s is a product line of United Engines, LLC.

Based in Oklahoma City, Buck’s, a General Motors industrial OEM, supplies a range of alternative-fuel engines that run on natural gas, propane, and LPG fuels. Buck’s targets an extensive range of industrial applications, including irrigation, gas compression, oil production, industrial equipment, power generation, mobile equipment, wind turbines, and re-power applications. The company was established in 1958, has additional locations in Lubbock and Amarillo Texas, and distributes its engines to customers around the world.

PSI acquired certain assets of Buck’s for an initial cash purchase of approximately $9.7 million. PSI financed the purchase with its existing line of credit. PSI expects Buck’s to contribute approximately $6 million to $8 million of revenue for the balance of 2015.

“We’re consolidating the efforts of the two companies and creating a strategic relationship between PSI and United Engines,” said Gary Winemaster, Chief Executive Officer of PSI. “Buck’s has a long history with a loyal industrial customer base. We will bring the strengths of both companies together to take advantage of longstanding customer relationships and economies of scale, while providing technical value and continuity for the future.”

All for cash, it seems so any profit will be accretive.