Audiovox Corp. will pay $166 million to buy Indianapolis-based high-end speaker maker Klipsch Group Inc., the New York-based company disclosed Thursday, revealing the acquisition cost of deal first announced in early January.
Audiovox, which signed “non-binding term sheet” on Jan. 7 to acquire all of Klipsch’s shares, said it now has a definitive agreement to acquire the local speaker company. It said the deal should close within 30 days.
Klipsch will become a subsidiary of Audiovox and operate as a stand-alone operation in Indianapolis under the leadership of the current management team, Audiovox said.
The acquisition is expected to be financed by a combination of existing Audiovox cash and a new asset-based revolving credit facility from Wells Fargo Capital Finance LLC that will also be used for operating capital.
Audiovox had sales of $573 million and Klipsch had sales of $169 million in the 12 months ended Nov. 30, the companies said.
Klipsch Group, founded in 1945 by Paul Klipsch, has 210 employees, including 130 in Indianapolis. Its brands include Jamo, Mirage, Energy and Athena.