Voxx International has acquired Vehicle Safety Holding (VSHC) via an asset purchase agreement valued at US$16.5m.
VSHC, through its Vehicle Safety Manufacturing and Rostra Brands subsidiaries, is a developer, manufacturer and distributor of safety electronics.
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The company’s offering includes turn signal switches, lighting products, obstacle sensing, cruise control, camera systems, harnessing and other related components.
Vehicle Safety markets and sells its products through an aftermarket distribution network, as well as to OEMs, Original Equipment Service Distributors and speciality vehicle manufacturers, among other channels.
With the transaction now officially closed, VSHC will immediately become part of Voxx Automotive and financial results will be incorporated into the company’s Automotive Electronics segment.
On an annualised basis, VSHC is expected to add around US$28m in net revenue and US$3m in Earnings Before Interest, Taxes, Depreciation and Amortisation, with further improvements as synergies are realised.
“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,” said Voxx International president and CEO, Pat Lavelle.
“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.
“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.”
