Hauppauge, N.Y. - Audiovox completed
its acquisition of Klipsch Group for $166 million.
As a wholly owned subsidiary of
Audiovox, Klipsch Group will operate as
a stand-alone entity that will continue to be run by its current management
team in its current Indianapolis headquarters, Audiovox said.
Audiovox expects the addition of
Klipsch to generate about $170 million in additional net sales and $25 million
in EBITDA in fiscal 2012, which started March 1 of 2011. Revenue for the
combined companies in fiscal 2012 will be around $730 million "with potential
upside for growth based on market conditions and continued execution of
strategic growth initiatives," the company added.
Audiovox president/CEO Patrick
Lavelle said the acquisition of Klipsch's worldwide properties "gives us entre
into the high-end installation market at both the residential and commercial
level." In addition to its top
market position in the U.S., "Klipsch brands are recognized throughout
EMEA, the Americas, and the Asia-Pacific region, and we plan to continue
expansion into other key international markets." Lavelle continued.
He also said Audiovox intends to
continue to support Klipsch's R&D capabilities and its quality reputation, both
of which he described as "second to none."
The purchase was financed through
Audiovox cash and a new $175 million asset-based revolving credit facility.