Audiovox, Klipsch Deal Closes

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 top market position 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.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.

Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Aperion Audio - Award Winning Home Audio for less

Aperion Audio - Award Winning Home Audio for less

Aperion is a group of dedicated audio enthusiasts committed to helping you create the sound experience of your life, at a price that won't break the bank. We make award-winning speakers that look as good as they sound and sell them online so you get unbeatable quality for the price. You always get a 60-day in-home audition with FREE SHIPPING. If you don't like your speakers for any reason, send them back and we'll pay the shipping. Really. You get unlimited free support for your entire system and we back up our products with generous 5-and-10-year warranties. Since we've been around for over fifteen years, you're covered.