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Voxx Expands OEM Position With Hirschmann

2/13/2012 12:01:00 AM Eastern

HAUPPAUGE, N.Y. – Voxx International is expanding
its OEM presence with the purchase of Germany-
based Hirschmann, the supplier of antenna
systems and TV tuner systems for vehicles.

The purchase price is 85 million Euros ($112.9
million at an exchange rate of 1 euro to $1.329.).
The deal is expected to close in March.

Sales by Hirschmann, also known as Car Communication
Holding, reached around 140 million
euros ($186 million) in calendar 2011. Its automaker
customers include Audi, BMW, DAF, Daimler,
PSA, Renault, Volkswagen and others.

The acquisition, Voxx executives said, brings the
company closer to its goal of achieving worldwide
OEM manufacturing status, holds potential for
launching mobile DTV tuners in the U.S., and helps
advance the company’s rear-seat entertainment
systems business.

Pat Lavelle, president/CEO of Voxx, said,
“Hirschmann has been supplying automotive manufacturers
for nearly 70 years and is a recognized
leader in both antenna solutions and mobile tuners
with strong, long-term OEM relationships.”

Lavelle continued that Hirschmann’s “strong
antenna engineering and R&D resources coupled
with our existing RCA, Terk, and Schwaiger capabilities
will allow us to expand antenna development
and strengthen our position as a leading worldwide
supplier.”

John Shalam, Voxx founder and chairman said the
acquisition “will not only generate additional revenue
— it will also continue our diversification program
and create strategic opportunities to leverage
Hirschmann’s advanced technologies.”

As a result, the acquisition “will lead to more advanced
and creative mobile electronics products
and continued growth with car manufacturers on a
worldwide basis,” he said.

The acquisition is expected to be financed with a
new revolving credit facility and term loan. Voxx said
it believes the acquisition will be accretive to cash
flow and earnings per share in fiscal 2013.