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.
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