Posted 1/7/2011 02:31 pm
Updated 1 year ago
Audiovox Corp. of Hauppauge, NY, said Friday that it has signed a non-binding term sheet to buy the Klipsch Group Inc. and all its subsidiaries.
Klipsch, a high-end speaker manufacturer founded in 1946 in Hope as Klipsch & Associates by Paul W. Klipsch, is now based in Indianapolis. Executives with the company have not commented on the deal.
"We have been actively pursuing acquisition opportunities that will grow the company and improve our financial performance," Patrick Lavelle, Audiovox's president and CEO, said in a news release. "The Klipsch brand is world-renowned and we believe Audiovox shareholders will benefit from the value of their unique market position, diversified customer base in home and professional channels, and their ongoing commitment to innovation."
Per the deal, Audiovox would buy all shares of Klipsch Group Inc. and its subsidiaries. Audiovox said the deal is "subject to a number of contingencies, including satisfactory completion of due diligence, negotiation and signing of definitive agreements and requisite approvals."
Audiovox said it would to finance the deal throughcash and a committed credit facility. Additional terms of the deal were not disclosed.
Klipsch has a manufacturing facility in Hope that makes wooden speaker cabinets for its Reference Series and Heritage Series products. Paul Klipsch owned the company until 1989, when he sold to his cousin, Indianapolis businessman Fred Klipsch and Fred's wife Judy.
Paul Klipsch died on May 5, 2002, at age 98.
According to the Indiana Business Journal, the company today has 210 employees, including 130 in Indianapolis. It has annual revenue of more than $175 million.
Klipsch's brands include Jamo, Mirage, Energy and Athena.