The Business

MAC, Inc. (www.macheaters.com) is a Bismarck, North Dakota-based designer, manufacturer and marketer of portable industrial flameless, indirect-fired and hydronic (glycol) surface heaters for oil & gas, industrial, construction and specialty applications. The Company’s industrial heaters are marketed primarily throughout North America under the MAC™ brand and are recognized by leading industrial and construction equipment rental providers, equipment dealers/distributors, and end users for its superior quality, durability, efficiency, low cost of ownership and ease of use. MAC is one of the largest U.S.-based portable industrial heater companies, maintaining a prominent market share position in North American regions of growing shale and oil sands exploration and production activity.

The Industry

MAC participates in the portable construction equipment market, a growing market within the $68 billion North American construction equipment industry. Continued growth within the North American construction equipment industry will be driven by (i) recovery and growth in U.S. construction activity, (ii) rising capital expenditures from the equipment rental channel, and (iii) rapid growth in infrastructure investment and drilling activity, particularly in the North American shale and oil sand regions. MAC’s established presence in North Dakota and proximity to both the Bakken Shale and Canadian oil sands make oil & gas exploration/production activity an important source of demand for MAC products.

The Process

Prestwick Partners initiated this transaction and acted as exclusive financial advisor to MAC, Inc. (Bismarck, North Dakota). Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Generac Power Systems (NYSE: GNRC), a Waukesha, Wisconsin-based manufacturer of a wide range of power generation equipment and other engine powered products. Prestwick’s process included both domestic and international strategic acquirers as well as private equity groups.