3.	Acquisitions

Acquisition of Pramac

March 1, 2016,

the Company acquired a

65%

ownership interest in Pramac for a purchase price, net of cash acquired, of

$60,

250.

Headquartered in Siena, Italy, Pramac is a leading global manufacturer of stationary, mobile and portable generators primarily sold under the Pramac® brand. Pramac products are sold in over

150

countries through a broad distribution network. The acquisition purchase price was funded solely through cash on hand.

The

35%

noncontrolling interest in Pramac had an acquisition date fair value of

$34,253,

and was recorded as a redeemable noncontrolling interest in the consolidated balance sheet, as t

he noncontrolling interest holder has within its control the right to require the Company to redeem its interest in Pramac. The noncontrolling interest holder has a put option to sell their interests to the Company any time within

five

years from the date of acquisition. The put option price is either (i) a fixed amount if voluntarily exercised within the

first

two

years after the acquisition, or (ii) based on a multiple of earnings, subject to the terms of the acquisition. Additionally, the Company holds a call option that it

may

redeem commencing

five

years from the date of acquisition, or earlier upon the occurrence of certain circumstances. The call option price is based on a multiple of earnings that is subject to the terms of the acquisition. Both the put and call option only provide for the complete transfer of the noncontrolling interest, with

partial transfers of interest permitted.

The redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests

’ share of comprehensive net income (loss), or the estimated redemption value, with any adjustment to the redemption value impacting retained earnings, but

not

net income. However, the redemption value adjustments are reflected in the earnings per share calculation, as detailed in Note

12,

“Earnings Per Share,” to the consolidated financial statements. The following table presents the changes in the redeemable noncontrolling interest:

	Year Ended December 31 ,
	201 7			201 6
Balance at beginning of perio d	$	33,138		$	-
Noncontrolling interest of Prama c		1,540	(1)		34,253
Net incom e		1,631			100
Foreign currency translatio n		8,529			(2,124	)
Redemption value adjustmen t		(909	)		909
Balance at end of perio d	$	43,929		$	33,138

(

)

Represents the additional noncontrolling interest of Pramac resulting from a common control transaction between the Generac Mobile Products S.r.l. and Pramac UK Lim

ited legal entities.

The Company

finalized the Pramac purchase price allocation during the

first

quarter of

2017,

based upon its estimates of the fair value of the acquired assets and assumed liabilities. The final purchase price allocation as of the balance sheet date was as follows:

	March 1, 201 6
Accounts receivabl e	$	50,716
Inventorie s		39,889
Property and equipmen t		19,138
Intangible asset s		34,471
Goodwil l		46,775
Other asset s		7,698
Total assets acquire d		198,687

Short-term borrowing s		21,741
Accounts payabl e		40,270
Long-term debt and capital lease obligations (including current portion )		18,599
Other liabilitie s		23,521
Redeemable noncontrolling interes t		34,253
Noncontrolling interes t		53
Net assets acquire d	$	60,250

The goodwill ascribed to this acquisition is

not

deductible for tax purp

oses. The accompanying consolidated financial statements include the results of Pramac from the date of acquisition through

December 31, 2017.

Acquisition of CHP

August 1, 2015,

the Company acquired CHP for a purchase price, net of cash acquired, of

$74,570.

Headquartered in Vergennes, Vermont, CHP is a leading manufacturer of high-quality, innovative, professional-grade engine powered equipment used in a wide variety of property maintenance applications, with sales primarily in North America. The acquisition purchase price was funded solely through cash on hand.

The Company

finalized the CHP purchase price allocation during the

fourth

quarter of

2015

based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately

$75,174

of intangible assets, including approximately

$36,284

of goodwill, as of the acquisition date. The goodwill ascribed to this acquisition is

not

deductible for tax purposes. In addition, the Company assumed

$12,000

of debt along with this acquisition. The accompanying consolidated financial statements include the results of CHP from the date of acquisition through

December 31, 2017.

Pro Forma Information

The following unaudited pro forma information of the Company gives effect to these acquisitions as though the transactions

had occurred on

January 1, 2015.

Consolidated net sales on a pro forma basis for the years ended

December 31, 2016

and

2015

were

$1,473,799

and

$1,566,459,

respectively. The pro forma impact of these acquisitions on net income and earnings per share for both the years ended

December 31, 2016

and

2015

not

significant due to amortization related to acquired intangible assets and the fair value step-up of inventory in purchase accounting. This unaudited pro forma information is presented for informational purposes only and is

not

necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated on

January 1, 2015.