An official announcement was just made by Audiovox, revealing that the company has recently signed a non-binding term sheet to purchase all the shares of Klipsch.
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The agreement is subject to a number of vague contingencies listed as "satisfactory completion of due diligence, negotiation, and signing of definitive agreements and requisite approvals." Basically, the sale is going to happen but the two companies haven't agreed on the terms yet. One can hold out hope that Klipsch will survive as its own entity, but the absorption into Audiovox seems imminent.
Audiovox is planning to finance the buy through c combination of cash and the commitment of a credit facility. The company has also enlisted the advice of Wells Fargo as a financial advisor.
Interestingly enough, both Klipsch was Audiovox were at CES 2011, showing off new lines of products. Klipsch has always been an interesting company offering valuable products. With few exceptions, corporations run enthusiast audio brands with bean counters and not people that are passionate about audio. Klipsch has been a brand run by people with passion. Hopefully, Audiovox will remain hands off. It would be a shame for a good brand to be absorbed and disappear. We at HomeTheaterReview.com are concerned that that is exactly what will happen.
