Generac Stock Skyrockets 40% After Amazon Deal Worth Up To $8B
Generac Holdings (GNRC) stock surged 40% in after-hours trading on Wednesday following a long-term supply agreement with Amazon.com (AMZN). The deal is worth up to $8 billion and involves Generac supplying backup power generators for Amazon's data centers.
Under the agreement, initial deliveries of backup generators are expected to total $2.4 billion in 2027 and 2028. As part of the deal, a wholly-owned Amazon subsidiary was issued a warrant to acquire up to 1.69 million GNRC shares at an exercise price of $200.9266 per share.
The remaining shares will vest in multiple tranches based on aggregate gross payments received by Generac and its global affiliates from Amazon and its affiliates, subject to certain conditions. The warrant can be exercised in whole or in part through either a cash or cashless exercise at Generac's election by September 16, 2033.