Hauppauge, N.Y. – Audiovox
and Klipsch Group entered into a definitive agreement in which Audiovox will
buy Klipsch for $166 million. The deal is expected to close in 30 days.
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 stand-alone
company, said Audiovox president/ CEO Patrick Lavelle, “we see many
opportunities to leverage distribution, global brand development, and brand
expansion in areas such as OEM automotive and professional audio.”
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 also
expects to have money left over under the credit facility for general corporate
purposes.
On a pro-forma basis, for the 12 months ending
Nov. 30, 2010, the combined companies’ revenues were about $742.2 million,
compared with $573.1 million for Audiovox as a standalone company, Audiovox
said.
Lavelle called
Klispch 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.”
