Business Notes
Staff -- TWICE, 1/8/2002
Best Buy Adds Kenwood Lineup To Product Mix
Minneapolis — Best Buy will offer Kenwood electronics products in the retailer's more than 450 stores nationwide, beginning this spring. Kenwood manufactures car and home audio and video products. Included in the Kenwood product line-up set for Best Buy are CD head-units, cassette head-units, amplifiers, speakers, subwoofers and satellite radio products.
Thomson To Acquire Digital Media Company
Paris— Video technology provider and CE product maker Thomson Multimedia has agreed to acquire digital media company Grass Valley Group for $172 million. The transaction is said to be a fit with the development strategy of Thomson's Digital Media Solutions, a business segment focused on business-to-business solutions for content providers, broadcasters and network operators. Thomson expects, through the new combination, a significant gain for customers in professional content creation, editing and distribution.
Electrolux Increases Layoffs to 5.6% Of Workforce
Stockholm, Sweden — Electrolux, which sells Frigidaire major appliances in the United States, has boosted its worldwide job cuts to 2,800, continuing the restructuring program set in motion last October when the company said it would cut 2,100 jobs in the next two years. The newest cuts bring total workforce reduction to 5.6 percent. Current layoffs, part of Electrolux's ongoing effort to cut costs and increase productivity, will result in a charge of $140 million against earnings in the fourth quarter of 2001, and save the company $3.8 million for the year, $44 million in 2002 and $89 million annually after 2003. In the United States, Electrolux estimates its 2001 savings, based on 325 additional layoffs, at $10.8 million. Savings will rise to $15 million in 2002 and to $20 million in 2003. No additional U.S. plant closures were announced.
EchoStar $700 Million Offering For Hughes Merger
Littleton, Colo. — EchoStar DBS Corp., a wholly owned indirect subsidiary of EchoStar Communications, is offering $700 million aggregate principal amount of senior notes due 2009. Net proceeds from the offering are intended to provide a portion of the financing for the proposed merger of EchoStar with Hughes Electronics. Proceeds can also be used by EchoStar for the acquisition of Hughes' approximate 81 percent interest in PanAmSat, if EchoStar does not consummate the merger. Or this can be used for the construction, launch and insurance of additional satellites, strategic investments and acquisitions.
Ultimate Announces $80 Million Line of Credit
Denver — Ultimate Electronics has closed on a new $80 million credit facility that replaces the retailer's existing bank credit agreement of $40 million. It also provides additional funds for ongoing working capital needs and the company's expansion. Ultimate Electronics currently has availability in excess of $60 million under the terms of the new credit facility.
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