HAUPPAUGE, N.Y., June 26, 2017 /PRNewswire/ -- VOXX
International Corporation (NASDAQ: VOXX), a leading manufacturer
and supplier of automotive, consumer electronics and accessories,
and premium audio products worldwide, today announced that it has
entered into a definitive agreement to sell Hirschmann Car
Communication GmbH and its worldwide subsidiaries ("Hirschmann") to
a subsidiary of TE Connectivity Ltd. (NYSE: TEL).
Under the terms of the Stock Purchase Agreement, TE Connectivity
("TE") will acquire Hirschmann for an enterprise value of
148.5 million Euro. Based on the Euro
to US dollar conversion (1 Euro =
$1.12), this equates to approximately
$166.0 million. The final purchase
price is subject to further net cash and working capital
adjustments. VOXX International (Germany) GmbH is the selling entity in this
transaction.
VOXX International Corporation will continue to operate in the
Automotive industry and will retain its ongoing OEM business that
is not part of this transaction through VOXXHirschmann Corporation.
The Company will also continue its Automotive Aftermarket business
through its proprietary brands and 3rd-party
distribution agreements. The continuing operations include the
Company's market-leading rear-seat infotainment solutions, car
security and remote start systems, remote start modules, app-based
vehicle security solutions, keyless entry products and its newest
innovation, the eFob, satellite radio products, and telematics,
among others. Business lines that will be sold as part of this
agreement, include Hirschmann's antenna, smart antenna,
multi-digital tuner and commercial asset tracking business, which
incorporates various technologies and product lines. Under the
terms of the agreement, VOXX International will phase out the
VOXXHirschmann name over a period of two years.
Commenting on today's announcement, Pat
Lavelle, President and Chief Executive Officer of VOXX
International Corporation stated, "I would like to thank the
Hirschmann employees for their unwavering commitment to innovation
and their positive contribution to VOXX International. The passion
they have displayed in driving and developing technology-advanced
products for OEM customers has been exceptional. We believe with
the additional resources that TE Connectivity brings to Hirschmann,
the business will have the ability to grow faster and garner a
bigger share within their core product lines."
Lavelle continued, "Over the past few years, we have won a
considerable number of contracts from many of the most respected
Automotive companies in the world, and the pipeline we have amassed
has Hirschmann positioned very well in the future. While the
business is growing, it would require significant working capital
on our end and we believe now is the right time to sell. We also
believe that TE is the right company to bring Hirschmann to the
next level. Their ability to invest for growth, strong global
presence and history of innovation makes this a win-win for all
parties – for VOXX, TE Connectivity and the customers served."
"The proposed acquisition of Hirschmann further expands our
product portfolio and the integrated, highly engineered solutions
we provide for connected and autonomous vehicles worldwide," said
Eric Kueppers, President of TE's
Global Automotive business. "Increasing data needs and new
applications require active communications and increased
connectivity within and outside the vehicle. Combining Hirschmann's
leading antenna technology with TE's sensing and connecting
capabilities allows us to expand our offerings, providing customers
with value-add, holistic end-to-end data connectivity
solutions."
This transaction is subject to regulatory approval and customary
closing conditions. The Company expects to provide more details
around this transaction in its upcoming Fiscal 2018 first quarter
results announcement and corresponding conference call, which will
be held in mid-July 2017.
Additionally, the expected close, subject to approvals, is
anticipated to be on August 31,
2017. Wells Fargo Securities is acting as exclusive financial
advisor to VOXX International on the transaction.
ABOUT VOXX INTERNATIONAL CORPORATION
VOXX International Corporation (NASDAQ: VOXX) has grown into a
worldwide leader in Automotive, Consumer Electronics, Consumer
Accessories and Premium Audio. Today, the Company has an
extensive distribution network that includes power retailers, mass
merchandisers, 12-volt specialists and most of the world's leading
automotive manufacturers. The Company has an international
footprint in Europe, Asia, Mexico
and South America, and a growing
portfolio, which now comprises over 30 trusted brands. Among the
Company's brands are Klipsch®, RCA®, Invision®, Jensen®, Audiovox®,
Terk®, Acoustic Research®, Advent®, Code Alarm®, Car Connection®,
808®, AR for Her®, Prestige®, EyeLock, Jamo®, Energy®, Mirage®, Mac
Audio®, Magnat®, Heco®, Schwaiger®, Oehlbach®, and Incaar™.
For additional information, please visit our Web site at
www.voxxintl.com.
ABOUT HIRSCHMANN CAR COMMUNICATION
Hirschmann Car Communication is one of the world's leading
specialists in antenna, transmitter, receiver, M2M and telematics
technologies, primarily for automobile communications and
connectivity. The Company is a primary antenna provider to some of
the world's most notable auto manufacturers, and a leader in TV
tuner applications in Europe,
Middle East and Africa (EMEA). The Company operates in
Europe, North America and China. Further information can be found
at www.hirschmann-car.com.
ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a $12 billion global technology leader. Our
commitment to innovation enables advancements in transportation,
industrial applications, medical technology, energy, data
communications, and the home. TE's unmatched breadth of
connectivity and sensor solutions, proven in the harshest of
environments, helps build a safer, greener, smarter and more
connected world. With 75,000 people – including more than 7,000
engineers – working alongside customers in nearly 150 countries, we
help ensure that EVERY CONNECTION COUNTS – www.TE.com
Safe Harbor Statement
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 automotive, premium audio
and consumer accessories 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; foreign currency fluctuations and concerns
regarding the European debt crisis; restrictive debt covenants; 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 VOXX International Corporation 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 for the
fiscal year ended February 28,
2017.
Company Contact:
Glenn Wiener, President
GW Communications
Tel: 212-786-6011
Email: gwiener@GWCco.com
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SOURCE VOXX International Corporation