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.
Pat Lavelle, president/CEO of Voxx, said, “Hirschmann has been supplying automotive manufacturers for nearly 70 years and is a recognized leader in both antenna solutions and mobile tuners with strong, long-term OEM relationships.”
Lavelle continued that Hirschmann’s “strong antenna engineering and R&D resources coupled with our existing RCA, Terk, and Schwaiger capabilities will allow us to expand antenna development and strengthen our position as a leading worldwide supplier.”
John Shalam, Voxx founder and chairman 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.