Audiovox is moving forward on the purchase of high end speaker company Klipsch, which it hopes to buy for around $166 million.
And Audiovox said it may expand Klipsch products into the OEM automotive market.
The companies signed a definitive agreement for the purchase, which is expected to be final within 30 days.
Klipsch will be run as a “stand-alone” operation in Indianapolis under its current management.
President and CEO Pat Lavelle of Audiovox Corp. said, “While Klipsch will operate as a stand-alone company, we see many opportunities to leverage distribution, global brand development, and brand expansion in areas such as OEM automotive and professional audio.”
For Klipsch’s part, the deal gives the company additional resources to grow its business for brands that also include Jamo, Energy and Mirage.
In an announcement late Thursday, CEO Fred Klipsch of the 60-year old company bearing his name said, “…Klipsch Group will continue to be ‘The innovative premium speaker provider our partners expect and trust.'”
In January, Audiovox announced the two companies signed “a non-binding term sheet” on the acquisition.
Source: Audiovox Corp.
