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So the rumors were true. Here is an official press release on the acquisition:
Dow Jones Business News
Audiovox Unit Gets Court OK For Recoton Assets Buy
Tuesday June 3, 4:21 pm ET
HAUPPAUGE, N.Y. (Dow Jones)--Audiovox Corp. received bankruptcy-court approval of its bid to acquire Recoton Corp.'s audio operations for $40 million and the assumption of $5 million in debt.
In a press release Monday, Audiovox said it expects the acquisition to generate additional revenue of $70 million to $100 million in the first year of ownership.
Audiovox, which had 2002 sales of $1.1 billion, expects the acquisition will create minimal financial pressure on its operations, since its cash position combined with its credit facilities will more than cover the deal.
As of Nov. 30, Audiovox had about $2.8 million in cash on hand, according to its annual report filed with the Securities and Exchange Commission (News - Websites).
Recoton filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code on April 8. The consumer electronics company warned in August that its losses and debt threatened its ability to remain a going concern.
Audiovox gains Recoton's Jensen, Advent and Acoustic Reaserach brands in the acquisition, plus Recoton German Holdings GmbH, which had sales of $70 million in 2002.
"We expect to blend the Recoton brands into our electronics subsidiary with minimal overhead expense," President and Chief Executive of the Audiovox Eltronics Corp. unit, Patrick Lavelle, said in a written statement. "We believe that the addition of the well-known Jensen brand will allow Audiovox Electronics Corp to expand marketing opportunities within existing 12-volt distribution channels. We will utilize this acquisition to expand Audiovox's penetration into the home by offering a complete line of Acoustic Research, Advent and Audiovox speaker and entertainment systems."
At about 4 p.m. EDT, Audiovox shares traded at $9.21, down 49 cents, or 5.1%, on composite volume of 107,900 shares, more than double the average daily volume.
Company Web site: http://www.audiovox.com
- Nora Devine; Dow Jones Newswires; 201-938-5400
Dow Jones Business News
Audiovox Unit Gets Court OK For Recoton Assets Buy
Tuesday June 3, 4:21 pm ET
HAUPPAUGE, N.Y. (Dow Jones)--Audiovox Corp. received bankruptcy-court approval of its bid to acquire Recoton Corp.'s audio operations for $40 million and the assumption of $5 million in debt.
In a press release Monday, Audiovox said it expects the acquisition to generate additional revenue of $70 million to $100 million in the first year of ownership.
Audiovox, which had 2002 sales of $1.1 billion, expects the acquisition will create minimal financial pressure on its operations, since its cash position combined with its credit facilities will more than cover the deal.
As of Nov. 30, Audiovox had about $2.8 million in cash on hand, according to its annual report filed with the Securities and Exchange Commission (News - Websites).
Recoton filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code on April 8. The consumer electronics company warned in August that its losses and debt threatened its ability to remain a going concern.
Audiovox gains Recoton's Jensen, Advent and Acoustic Reaserach brands in the acquisition, plus Recoton German Holdings GmbH, which had sales of $70 million in 2002.
"We expect to blend the Recoton brands into our electronics subsidiary with minimal overhead expense," President and Chief Executive of the Audiovox Eltronics Corp. unit, Patrick Lavelle, said in a written statement. "We believe that the addition of the well-known Jensen brand will allow Audiovox Electronics Corp to expand marketing opportunities within existing 12-volt distribution channels. We will utilize this acquisition to expand Audiovox's penetration into the home by offering a complete line of Acoustic Research, Advent and Audiovox speaker and entertainment systems."
At about 4 p.m. EDT, Audiovox shares traded at $9.21, down 49 cents, or 5.1%, on composite volume of 107,900 shares, more than double the average daily volume.
Company Web site: http://www.audiovox.com
- Nora Devine; Dow Jones Newswires; 201-938-5400
