Gemini's O'Neal Gives Details On Recoton Deal
By Jeff Malester -- TWICE, 5/5/2003
CLIFTON, N.J. — Following the announcement late last month that it had reached an agreement to acquire the accessories portion of Recoton's business, Gemini president/CEO Michael O'Neal elaborated on his strategy for combining the best of the two company's into a single entity.
"We plan to preserve [Recoton's] businesses — it's customer relations — as it exists today. We are going to leverage the strengths of the two companies, so we become a much better supplier to all our customers."
As part of the deal, Recoton and Gemini have entered into a transition agreement which, among other things, will provide Recoton's customer base with a continuity of timely delivery of products and essential services.
"We plan to consolidate Recoton's operations here in [Clifton] New Jersey, but we will maintain a sales and marketing office in Florida," O'Neal told TWICE. "We expect a limited number of folks from Recoton's operating side to join us here, while some operations will stay down there." Recoton is based in Lake Mary, Fla.
O'Neal, who has put out the welcome mat for Recoton's marketing and sales people, as well as the operations staff, said Gemini would consider all of the sales and marketing employees who would join his company. "We do have interest in these people, to fit them in here," he said. When asked if he could be more specific in naming persons who might join Gemini, O'Neal said he could not elaborate at this time.
Gemini's proposed transaction with Recoton includes the bankrupt company's Jensen, Acoustic Research, Advent, Discwasher and Ambico branded accessories. It does not take in the Jensen, Acoustic Research and Advent audio products.
"We have not ruled out the audio side. But as of today, nothing is on the table," said O'Neal about the possibility of acquiring these products in addition to Recoton's accessories lineup.
"Recoton's brands will not disappear," said O'Neal. The idea is to have "a combination of the best of the two businesses."
Gemini's planned acquisition is subject to the bankruptcy court's approval. "The court has to approve our bid," said O'Neal. "Following this, there will be an auction. Someone else could come in and top us." But a determined O'Neal said Gemini should not be counted out if another bidder entered the acquisition process.
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