CANTON, Mass. -- Tweeter Home Entertainment said it plans to purchase Douglas TV, The Big Screen Store, a five-unit electronics specialty chain based in Des Plaines, Ill., this October for about $5.75 million in cash and stock.
The acquisition, which is subject to terms, conditions and regulatory approval, would represent Tweeter's sixth acquisition in four years and its second in the Chicago market following its buyout of United Audio Centers in April.
Like previous acquisitions, Douglas is a family-owned private business that's likely in search of an exit strategy. The 34-year-old business places heavy emphasis on big-screen TVs, which make up about half of its sales, while 17 percent of sales are in digital or HD-ready TV. Its stores, which average about 14,600 square feet, also carry home theater, home satellite systems and a full range of home audio. Unlike recent Tweeter purchases, Douglas is not a fellow PRO Group member.
Tweeter CEO Jeffrey Stone called the acquisition "another important step in Tweeter's growth." He added that operations would be combined immediately following the purchase and that a name change would follow in early 2001.