VOXX has been making some shrewed deals lately. Inivision purchased for $10M will add ~$100M to revenues in 2012 (year ends 2/28) and tripled OEM last quarter for VOXX. This Klipsch deal is immediately accredive also. Add that and a grossly inadequate valuation and there is some real appreciation potential here.
Audiovox Corp. (VOXX) said it will buy privately held audio-products maker Klipsch Group Inc. for $166 million.
Audiovox–which itself makes audio products under its namesake brand as well as RCA, Acoustic Research and Jensen, said it expects the deal to add to its cash flow and bottom line in fiscal 2012, including all financing costs.
Audiovox President and Chief Executive Patrick Lavelle said the deal “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.”
Klipsch will become a wholly owned subsidiary of Audiovox and will be run as a stand-alone operation, keeping its headquarters in Indianapolis. It will continue to be run by its current management team.