Voxx has closed on its previously announced sale of Hirschmann Car Communication and worldwide subsidiaries to a division of TE Connectivity for around US$170m.
There may be additional proceeds received by Voxx, which will be based upon final working capital adjustments to be calculated within 75 days.
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“With this transaction closed, we are now in position to pay down our debt in full, which will save us more than US$6m in interest payments annually, while providing us with cash on hand and full access to our banking facilities to support our business and pursue a targeted M&A strategy,” said Voxx president and CEO, Pat Lavelle.
“We are looking to grow organically within each of our segments and inorganically, through complementary acquisitions or ventures that will strengthen our offering, customer reach and financials.
“Our focus will predominantly be in the domestic markets, where we can leverage our distribution into the retail and automotive sectors and we intend to stay within our current areas of expertise.
“Over the next year, we will look for synergies and areas to lower our fixed expenses given lower sales volumes related to the Hirschmann sale, while at the same time, ensuring we have the foundation to support accretive acquisitions.”
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By GlobalDataAs noted by the company earlier in June, Voxx will continue to operate in the automotive industry and will retain its ongoing OEM business that is not part of this transaction through Voxx. The company will also continue its automotive aftermarket business through its proprietary brands and third-party distribution agreements.
The continuing operations include the company’s 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 which 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.
The terms of the agreement will see Voxx phase out the Voxx Hirschmann name during a two-year period.
