With Klipsch Deal, Audiovox To Be Major Speaker Player
By Joseph Palenchar On Feb 21 2011 - 5:01am
PORT WASHINGTON, N.Y. –
Audiovox closes its definitive agreement to
buy the Klipsch Group for $166 million,
it will become a major player in the home
speaker market, NPD statistics show.
In 2010, NPD found that Klipsch-branded
speakers ranked second in unit-volume
share at retail behind Polk and tied with
Polk for first place in dollar share.
The statistics don’t include Klipsch
Group’s other speaker brands — Jamo,
Mirage, and Energy — whose sales would
boost total Klipsch share.
Klipsch bought Denmark-based Jamo,
an electronics/speaker company, in 2005,
and the following year purchased Audio
Products International, the Canadian company
known for the Mirage and Energy
The deal is expected to close by the first
week of March.
Klipsch will become a wholly owned
subsidiary of Audiovox, will be run as a
stand-alone operation in Indianapolis, and
will continue to be led by Klipsch’s current
management team, Audiovox said.
Though Klipsch will operate as a atdand-
alone company, said Audiovox president/
CEO Pat Lavelle, “we see many opportunities
to leverage distribution, global
brand development, and brand expansion
in areas such as OEM automotive and professional
Klipsch also “provides an outstanding
new distribution channel for our company
to reach the home and commercial installation
markets,” Lavelle said.
Audiovox expects to finance the acquisition
with a combination of existing Audiovox
cash and a new asset-based revolving
credit facility that will also be used for
operating capital. Once the deal closes,
Audiovox expects to have money left over
under the credit facility for general corporate
On a pro-forma basis, for the 12
months ended Nov. 30, 2010, the combined
companies’ revenues were about
$742.2 million compared with $573.1
million for Audiovox, Audiovox said.
Lavelle called Klipsch Group “the preeminent
audio brand for residential, professional
and personal listening use.” He
said the company has “a strong and stable
base of retail, e-commerce, commercial
distribution and professional installation
business partners in North America, Europe
and around the world.”