ORLANDO, Fla., Feb. 3, 2020 /PRNewswire/ -- VOXX International
Corporation (NASDAQ: VOXX), a leading manufacturer and distributor
of automotive and consumer technologies for the global markets,
today announced the acquisition of Vehicle Safety Holding Corp.
("VSHC" or "Vehicle Safety") via an asset purchase agreement valued
at $16.5 million.
VSHC, through its Vehicle Safety Manufacturing, LLC and Rostra
Brands subsidiaries, is a leading developer, manufacturer and
distributor of safety electronics. Today, the Company's offering
comprises a wide variety of safety-oriented electronics, including
turn signal switches, lighting products, obstacle sensing systems,
cruise control systems, camera systems, specialized harnessing, and
other related components. Vehicle Safety markets and sells its
products through a diverse aftermarket distribution network, as
well as to some of the world's largest Original Equipment
Manufacturers ("OEM"), Original Equipment Service Distributors
("OES") and specialty vehicle manufacturers, among other
channels.
With over 40 years of history operating in the automotive space,
VSHC has built long-standing customer relationships, a strong
reputation for its design, engineering and manufacturing
capabilities, and a consistent track record of innovation and
growth. With this transaction now officially closed, VSHC will
immediately become part of VOXX Automotive Corp. and financial
results will be incorporated into the Company's Automotive
Electronics segment. On an annualized basis, VSHC is expected to
add approximately $28.0 million in
net revenue and approximately $3.0
million in Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA"), with further improvements as synergies are
realized.
"First and foremost, I'd like to welcome all VSHC employees to
the VOXX family and express my excitement over this transaction.
The team at VSHC has built a great business throughout the years,
with brands that are synonymous with high-quality products and
innovation. Both VSM and Rostra Brands have customer relationships
that are well-established, diverse product assortments and we
believe, opportunities for expansion given the markets they serve
and their competitive position," stated Pat
Lavelle, President and CEO of VOXX International
Corporation.
"As we've been communicating with our investors, we have been
looking at potential deals that could strengthen our business, add
new revenue streams and leverage our strengths. With VSM and Rostra
Brands, we found the perfect fit. Not only do we add new solutions
in stable and growing markets, we add new distribution channels and
customers, and have the ability to leverage our relationships to
further advance their business. Our strong balance sheet afforded
us this opportunity and we will continue to look for other
transactions that will generate growth, add EBITDA and cash flow,
and offer our customers a greater product assortment and
value-added services. At roughly 5X EBITDA and .6X revenue, we
believe this is a compelling acquisition and one that can be
further enhanced and lead to greater returns for our shareholders
and our customers," Lavelle continued.
Angle Advisors served as the financial advisor to Vehicle Safety
Holding Corp. on this transaction. VOXX International Corporation
did not have any financial advisor.
About VOXX International Corporation
VOXX International Corporation (NASDAQ: VOXX) has grown
into a worldwide leader in Automotive Electronics and Consumer
Electronics, with emerging Biometrics technology to capitalize on
the increased need for advanced security. Over the past several
decades, with a portfolio of over 30 trusted brands, VOXX has built
market-leading positions in in-vehicle entertainment, automotive
security, reception products, a number of premium audio market
segments, and more. VOXX is a global company, with an extensive
distribution network that includes power retailers, mass
merchandisers, 12-volt specialists and many of the world's leading
automotive manufacturers. For additional information, please visit
our website at www.voxxintl.com.
Safe Harbor Statement
Except for historical information contained herein, statements
made in this release constitute forward-looking statements and thus
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 the: risk factors described in the
Company's annual report on Form 10-K for the fiscal year ended
February 28, 2019 which was filed
with the SEC on May 14, 2019, as
amended on Form 10-K/A filed on May 30,
2019, and other filings made by the Company from time to
time with the SEC. The factors described in such SEC filings
include, without limitation: the Company's ability to realize the
anticipated results of its business realignment; cybersecurity
risks; 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 electronics, consumer
electronics and biometrics 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
restrictive debt covenants.
Company Contact:
Glenn Wiener, President / GW
Communications
Tel: 212-786-6011 / Email: gwiener@GWCco.com
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SOURCE VOXX International Corporation