o Purchase price is $19.7 million, plus a net asset payment, plus a five- year fee related to the RCA brand in the consumer electronics audio video product field.
o Proposed acquisition to add approximately $150 million in annual sales as well as the ability to generate royalty income and should positively impact fiscal 2009 results.
o Company to acquire the rights to the RCA brand for consumer electronics audio video products.
HAUPPAUGE, N.Y., Oct. 16 -- Audiovox Corporation (NASDAQ:VOXX) announced today that it has entered into a definitive agreement with Thomson to acquire its U.S., Canada, China and Hong Kong consumer electronics audio video business. As a result of the acquisition, Audiovox will acquire the rights to the RCA brand for consumer electronics audio video products. The Company anticipates this transaction will close by December 31, 2007.
Patrick Lavelle, President and CEO of Audiovox stated, "This acquisition adds the well respected RCA brand for a wide variety of consumer electronics audio video products to our brand portfolio and enhances our purchase of the RCA consumer electronics accessory business made earlier in the year."
Lavelle further stated, "In addition, this acquisition is in line with our announced M & A strategy of adding synergistic businesses to our core and leveraging existing overhead to assimilate them while adding minimal additional operational expenses."
In January 2007, Audiovox completed its acquisition of Thomson's America's consumer electronics accessory business for a total purchase price of approximately $59 million. This deal gave Audiovox the rights to the RCA brand for consumer electronics accessories. The acquisition also included the Recoton, Spikemaster, Ambico and Discwasher brands for use on any products and the Jensen, Advent, Acoustic Research and Road Gear brands for electronics products in 2003.
Audiovox Corporation is a leading international supplier and value added service provider in the consumer electronics industry. The Company conducts its business through subsidiaries and markets mobile and consumer electronics and accessories products both domestically and internationally under several of its own brands. It also functions as an OEM (Original Equipment Manufacturer) supplier to a wide variety of customers, through several distinct distribution channels. For additional information, please visit Audiovox on the Web at http://www.audiovox.com/.
GW Communications for Audiovox
Tel: 212-786-6011 or
Source: Audiovox Corporation
Web site: http://www.audiovox.com/