Generac Stock Surges on Amazon Deal Worth Over $8 Billion
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 over $8 billion and includes Generac issuing a warrant to an Amazon subsidiary for up to 1.69 million GNRC shares at $200.9266 per share.
The companies signed the agreement on September 16, which also included a long-term supply agreement. According to the deal, initial backup generator deliveries are expected to total $2.4 billion in 2027 and 2028.
The warrant will vest in multiple tranches based on aggregate gross payments received by Generac from Amazon for backup power generators for Amazon data centers. Subject to vesting and other conditions, the warrant can be exercised in whole or in part through either a cash or cashless exercise at Generac's election on or before September 16, 2033.
Generac Holdings provides power generation equipment, energy storage systems, and other products and services for residential, commercial, data center, telecom, rental, and industrial markets.