(Bloomberg) -- Generac Holdings Inc., the biggest US supplier of backup power generators, is considering acquisitions to boost its product offerings as electricity costs soar to meet booming demand.

“Utility bills are going to become one of your biggest monthly expenses,” other than rent or mortgage payments, Chief Executive Officer Aaron Jagdfeld said in an interview Friday at Bloomberg News headquarters in New York. “Managing power usage will be very important as costs rise.”

Power prices are surging in parts of the country as utilities race to fortify grids vulnerable to wildfires and try to satisfy booming electric demand from data centers, artificial intelligence, electric vehicles and industrial facilities. Jagdfeld expects power prices to double over the next two decades. 

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Generac has spent more than $800 million on several acquisitions since 2019 as it has moved or expanded into markets including energy storage, energy management devices and electric-vehicle charging. It has more than $1 billion in cash and borrowing available in a revolving credit facility, according to a Securities and Exchange Commission filing.

Jagdfeld wouldn’t go into details about his M&A strategy but said he’s “absolutely” willing to pursue deals to help expand his energy technology portfolio. “We’re going to put that cash to work,” he said. 

The Waukesha, Wisconsin, company posted $4 billion in sales in 2023, and expects to see that increase 3% to 7% this year. About 8% of its revenue now comes from energy technology — Jagdfeld’s term for anything besides generators. He sees that swelling to as much as 25% within three to five years. 

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