Hauppauge, N.Y. – Audiovox completed
its acquisition of Klipsch Group for $166 million.
As a wholly owned subsidiary of
Audiovox, Klipsch Group will operate as
a stand-alone entity that will continue to be run by its current management
team in its current Indianapolis headquarters, Audiovox said.
Audiovox expects the addition of
Klipsch to generate about $170 million in additional net sales and $25 million
in EBITDA in fiscal 2012, which started March 1 of 2011. Revenue for the
combined companies in fiscal 2012 will be around $730 million “with potential
upside for growth based on market conditions and continued execution of
strategic growth initiatives,” the company added.
Audiovox president/CEO Patrick
Lavelle said the acquisition of Klipsch’s worldwide properties “gives us entre
into the high-end installation market at both the residential and commercial
level.” In addition to its
in the U.S., “Klipsch brands are recognized throughout
EMEA, the Americas, and the Asia-Pacific region, and we plan to continue
expansion into other key international markets.” Lavelle continued.
He also said Audiovox intends to
continue to support Klipsch’s R&D capabilities and its quality reputation, both
of which he described as “second to none.”
The purchase was financed through
Audiovox cash and a new $175 million asset-based revolving credit facility.