* Purchase price is $50 million, plus a five-year fee related to the RCA
brand in the consumer electronics accessories field
* Proposed acquisition to add over $150 million in annual sales and should
add to 2007 earnings
* Company to acquire the rights to the RCA brand for consumer electronics
accessories
HAUPPAUGE, N.Y., Dec. 21 /PRNewswire-FirstCall/ -- Audiovox Corporation
(Nasdaq: VOXX), announced today that it has entered into a definitive
agreement with Thomson to acquire its Americas consumer electronics
accessory business, which includes approximately 115 employees in locations
in the United States, Canada, China (including Hong Kong) and Malaysia. The
Company anticipates this transaction will close in early 2007.
As a result of the acquisition, Audiovox will acquire the rights to the
RCA brand for consumer electronics accessories. The acquisition also
includes the Recoton, Spikemaster, Ambico and Discwasher brands for use on
any products and the Jensen, Advent, Acoustic Research and Road Gear brands
for accessory products. Audiovox already owns Jensen, Advent, Acoustic
Research and Road Gear brands for electronics products as part of prior
acquisitions.
Patrick Lavelle, President and CEO of Audiovox stated, "The well
respected RCA name further strengthens our brand portfolio in consumer
electronics accessories and gives us greater flexibility at the
distribution level. We believe the acquisition of this business will
enhance both our top and bottom line performance and create powerful
marketing synergies for our organization."
Lavelle further stated, "This acquisition supports our growth strategy
of acquiring companies in businesses that generally operate at higher
margins than electronics. In addition, our primary acquisition targets
include companies where we can utilize operating leverage to gain maximum
efficiencies. Over the past year, we have worked to streamline our
operations while maintaining a cost structure that supports additional
sales. This acquisition is synergistic as its product lines move through
existing channels where we share many of the same customers and have strong
relationships in place today. Post closing, we will still have significant
financial resources and will seek to continue to grow organically and
through acquisition."
About Audiovox
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 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.
Safe Harbor Language
Except for historical information contained herein, statements made in
this release that would constitute forward-looking statements may involve
certain risks and uncertainties. All forward-looking statements made in
this release are based on currently available information and the Company
assumes no responsibility to update any such forward-looking statements.
The following factors, among others, may cause actual results to differ
materially from the results suggested in the forward-looking statements.
The factors include, but are not limited to, risks that may result from
changes in the Company's business operations; our ability to keep pace with
technological advances; significant competition in the mobile and consumer
electronics businesses; our relationships with key suppliers and customers;
quality and consumer acceptance of newly introduced products; market
volatility; non-availability of product; excess inventory; price and
product competition; new product introductions; the possibility that the
review of our prior filings by the SEC may result in changes to our
financial statements; and the possibility that stockholders or regulatory
authorities may initiate proceedings against Audiovox and/or our officers
and directors as a result of any restatements. Risk factors associated with
our business, including some of the facts set forth herein, are detailed in
the Company's Form 10-K/A for the fiscal year ended November 30, 2005 and
its Form 10-Q for the fiscal second quarter ended August 31, 2006.
Company Contacts
Glenn Wiener
GW Communications for Audiovox
Tel: 212-786-6011 or Email: gwiener@GWCco.com
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