Audiovox Corporation has announced that it has entered into a definitive agreement to acquire Klipsch Group and its worldwide subsidiaries for a total of $166 million.
Subject to the normal procedures, the transaction is expected to close within 30 days. The acquisition is expected to be financed by a combination of existing Audiovox cash reserves and a new revolving credit facility from Wells Fargo Capital Finance that will also be used for operating capital.
Based in Indianapolis, Klipsch has a brand portfolio that includes Jamo, Energy, Mirage and its own eponymously-named product range, and has a presence in the residential, professional and personal listening markets. Under the terms of the acquisition, Klipsch will become a wholly-owned subsidiary of Audiovox and will be run as a standalone operation in Indianapolis. The current management team will remain in place.
Audiovox told PSNE that it was unable to comment further on the deal prior to completion, so the following statements are drawn from the original press announcement.
Patrick Lavelle (pictured), president and CEO of Audiovox Corporation, commented: “This transaction will add the world-renowned Klipsch Group brands – Klipsch, Jamo, Energy and Mirage – and its world class management team – to the growing Audiovox family of companies. This highly-respected company has for over 60 years been synonymous with premium high-end audio solutions, and today enjoys the well-deserved reputation as ‘the’ preeminent audio brand for residential, professional and personal listening use. They have a strong and stable base of retail, e-commerce, commercial distribution, and professional installation business partners in North America, Europe and around the world. Klipsch Group provides an outstanding new distribution channel for our company to reach the home and commercial installation markets.”
Fred Klipsch, chairman and CEO of Klipsch Group, Inc, added: “Our team looks forward to partnering with Audiovox and with the additional resources Audiovox has to offer accelerating our domestic and global growth. Klipsch remains focused on providing our customers with the best speaker solutions in the industry, maintaining our deep customer and supplier relationships and leveraging our world class employee base. Klipsch Group will continue to be ‘the’ innovative premium speaker provider our partners expect and trust.
“While Klipsch will operate as a stand-alone company, we see many opportunities to leverage distribution, global brand development, and brand expansion in areas such as OEM automotive and professional audio.”