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.
The acquisition will also couple Hirschmann's "strong antenna engineering and
R&D resources" with Voxx's existing RCA, Terk and Schwaiger antenna
capabilities to expand antenna development, Voxx said.
In addition, Voxx founder and
chairman John Shalam 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.
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.