Dallas - Starpower Home Entertainment Systems has entered
into a definitive agreement to acquire Kellum Audio Video & Appliance.
The acquisition is a cash transaction expected to close by
Sept. 26, and the amount of the transaction was not disclosed, according to Daniel
Pidgeon, chairman of Starpower.
Kellum is a 63-year-old retailer specializing in audio,
video and appliance sales, located in the Highland Park neighborhood of Dallas.
It has one location and annual sales of more than $10 million, according to
Pidgeon. Sales between CE and major appliances are "about 50/50" he said.
The business will continue to operate with the Kellum Audio
Video & Appliance brand and will integrate operations into the Starpower
organization. The retailer is currently a member of the Nationwide Marketing
Group, according to Pidgeon. Starpower is a member of BrandSource.
There are no layoffs expected as a result of the
transaction. Kellum will be operated as a stand-alone brand,
according to a statement from Starpower.
David Pidgeon, CEO of Starpower, said, "This transaction
will make possible the continuation of the highly respected Kellum name in the
Dallas market and beyond. This 63-year-old brand is a Dallas institution and
carries with it a rich tradition of customer service and leadership in both the
appliance and audio/video segments. Pat Kellum has built an amazing company
filled with amazing employees. We look forward to building on this foundation
to take the brand to new heights."
Pat Kellum, president of Kellum, stated, "I could not
be more excited to allow the merger of the Kellum name into Starpower's capable
hands. Starpower has proven itself as the unquestioned leader in custom installation
of audio and video and has shown tremendous leadership in this marketplace and
the industry. Now, with the additional resources of Starpower, Kellum will
continue to thrive as it enters the next generation."
Kellum's operations will immediately have access to Starpower's
custom installation group. Kellum customers will now have full access to the
installation and service staff already in place at Starpower, the retailers
Dallas - Starpower Home Entertainment Systems has entered into a definitive agreement to acquire Kellum Audio Video & Appliance.