Audiovox Acquires German Accessories Firm
by John Laposky -- TWICE, 3/5/2007
Hauppauge, N.Y. — Audiovox has added yet another brand to its growing accessories lineup with the purchase of Germany-based Oehlbach Kabel, a leading European supplier of cables, adapters and connectors.
The $6.6 million deal was consummated by Audiovox German Holdings, a wholly owned subsidiary, and comes less than three months after the company acquired Thomson’s accessories business for $57 million and one year after creating an accessories group and giving sales responsibilities for its brands to its consumer electronics division.
Pat Lavelle, president/CEO of Audiovox, stated, “This acquisition is in keeping with our stated goal to acquire synergistic businesses and product lines at higher margins than our core lines. Oehlbach is a recognized leader throughout Europe and has an impressive distribution network, covering 30 countries.”
In its most recent financial report for the fiscal third quarter, Audiovox returned to profitability, posting net income of $3.8 million compared with a net loss of $8.3 million in the prior year’s quarter. At the time Lavelle stated that Audiovox had about $130 million in cash and was “open to further acquisitions.”
The Oehlbach purchase has not changed that thinking, according to Lavelle. “We will now have an accessory division that should post sales upwards of approximately $200 million over the coming year as well as give us a respectable share in the accessory marketplace. We remain active in the [mergers and acquisitions] marketplace and continue to look towards additional acquisitions that will help us grow both our top and bottom lines and enhance shareholder value."
Besides Oehlbach, Audiovox’s stable of accessories brands includes Acoustic Research, Advent, Ambico, Audiovox, Code Systems, Discwasher, Jensen, Phase Linear, RCA, Recoton, Road Gear, Spikemaster, Terk and Vogel.
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