Published On: February 5, 2011

Update: It's Official Audiovox Owns Klipsch

Published On: February 5, 2011

Update: It's Official Audiovox Owns Klipsch

What does $166 million buy? If you are Audiovox, it reportedly buys you Klipsch and its worldwide subsidiaries, according to a report by the industry trade publication, Twice, which says that Audiovox has entered into a definitive agreement to make the purchase.

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Audiovox just announced that it has entered into a definitive agreement to acquire Klipsch and its worldwide subsidiaries for total consideration of $166 million.

Additional Resources
• Read more industry trade news from HomeTheaterReview.com.
• See our original article covering this merger for Home Theater Review's feelings.

The acquisition is expected to be financed by a combination of existing Audiovox cash and a new asset-based revolving credit facility from Wells Fargo Capital Finance, LLC that will also be used for operating capital. The combined assets of Audiovox and Klipsch will secure the borrowings under the financing commitments and the Company expects the transaction to close within 30 days. Subsequent to the close of the transaction, Audiovox expects to have excess availability under the credit facility for general corporate purposes. However, there is no assurance at this time that this transaction will be completed.

Klipsch will become a wholly-owned subsidiary of Audiovox and will be run as a stand-alone operation in Indianapolis, and will continue under the leadership of the current management team.

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