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Audiovox agrees to buy local speaker maker Klipsch

 IBJ Staff
January 7, 2011
Keywords
Consumer Electronics, Deals, Klipsch, Manufacturing & Technology, Mergers & Acquisitions, Technology
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Indianapolis high-end speaker maker Klipsch Group has agreed to be purchased by New York-based Audiovox Corp.

Audiovox said on Thursday it has signed a “non-binding term sheet” to acquire all of Klipsch’s shares.

The company said in its announcement that the deal is “subject to a number of contingencies.”

“The Klipsch brand is world-renowned and we believe Audiovox shareholders will benefit from the value of their unique market position, diversified customer base in home and professional channels, and their ongoing commitment to innovation,” Audiovox CEO Patrick Lavelle said in a statement.

Klipsch officials declined to comment Friday morning on the proposed deal.

Founded in 1945 by Paul Klipsch, the company has 210 employees, including 130 in Indianapolis. It has annual revenue of more than $175 million.

Klipsch’s brands include Jamo, Mirage, Energy and Athena.

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  • Take a deep breath
    Michael FremerJanuary 14, 2011 11:39 AM
    The acquisition of Klipsch by Audiovox can either mean renewed vigor for the company or extinction by extraction. The purchase itself is not a bad thing. Over the past decade, holding companies like D&M have bought Marantz, McIntosh, and Denon for instance and have actually re-invigorated them. Similar purchases of Audio Research, Sonus-Faber and other high end audio companies have also yielded positive results. As for Dr. Bose, his company excels at marketing and little else. Their recent $5000 46" LCD television is but one example of the company's mendacity. BTW: to one poster here: plenty of people spend more than $2000 on loudspeakers.
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  • maybe
    RadioTomJanuary 7, 2011 10:03 PM
    We'll have to wait and see, of course, but There's always been a gap between the typical home entertainment system's speaker quality and Klipsch speakers; and while not many folks are buying $2k speaker systems (and one can only sell so many auditoriums and movie houses to make up the difference), I suspect that the middle ground will be the salvation of both companies. Dr. Bose needs the competition...
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  • Interesting
    TomJanuary 7, 2011 7:16 PM
    I think that Audiovox may use the Klipsch technology to help bring other lines up to speed. Ditching the Audiovox title and using Klipsch as their name would not be a bad idea.
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  • Good for Fred and Judy - a loss for Indy
    ron eagleJanuary 7, 2011 4:35 PM
    As a systems consultant I and my team worked with Fred and his team back in the mid 90s when things at Klipsch weren't so good. They worked hard to reengineer the company back then, and I am happy they will now enjoy the payback on all those tough decisions they had to make.
    Congradulations Fred, I hope you find a way to continue to stay prominent in the Indy business community.
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  • Fred's Succession Plan
    GJanuary 7, 2011 2:03 PM
    Fred is not getting any younger and this was his succession plan IMO. Audiovox has wanted to get into the high end speaker business for a while and this was their opportunity. Nothing from an engineering or quality standpoint is supposed to change and from what I'm told technical employees will keep their jobs and those jobs will stay in Indy. Overhead positions I worry about.
    We'll see what actually happens. It will be a shame if Audiovox cuts corners and brings down the quality of the Klipsch brand given the fact they want a high end speaker...and an even greater shame if a lot of local people lose jobs.
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  • Might be good... might be bad.
    DavidJanuary 7, 2011 1:41 PM
    With this economy, Klipsh has to do something. Not many are buying $2000 stereo speakers nowadays.
    I know a couple guys who have worked there, and to seemed to be a decent place to work. we don't need to lose any more good employers around here.
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  • Ouch
    RickJanuary 7, 2011 12:56 PM
    Klipsch has been trying to grab a lower-end market since the economy hit the gutters. This is one way to do it. Everyone at Klipsch has their resume on the street already, so hopefully they will handle the dismantling.
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  • A Shame
    JoeJanuary 7, 2011 11:31 AM
    It would be a shame if the city lost Klipsch. It's a fine small company!
    Reply to CommentFlag Comment

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  1. First, the Athenaeum is going to have to get past the hurdle with the Lockerbie residents and the agreement that the parcel would be residential. Second, and in my opinion, this prime piece of property should include parking, PLUS, a black box theater(s), some market rate and affordable artist housing and a plan to renovate and reconfigure the second story theater. I would negotiate to add the DeHaan property surface parking lot into the development mix, place a one story surface parking garage on the DeHaan lot on the street level (for the Dehaan tenants use during the daytime) and add a second story to the garage that would become an addition to the current second story theater and then change the direction of the theater by moving the stage across the alley and on top of the DeHaan lot parking. You can add all the stage elements that are currently missing from the Athenaeum stage to make it more attractive for use by Ballet, Opera and traveling productions. Plus, the theater changes would probably help solve some of the soundproofing issues. Alas,it does not seem to be a part of the strategic plan to conduct a study to determine best use of the property. Seems like the current plan is a quick and easy move that ignores the property best use/potential and any strategic property planning for the effect on future generations.

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