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Audiovox agrees to buy local speaker maker Klipsch

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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
    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.
  • maybe
    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...
  • Interesting
    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.
  • Good for Fred and Judy - a loss for Indy
    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.
  • Fred's Succession Plan
    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.
  • Might be good... might be bad.
    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.
  • Ouch
    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.
  • A Shame
    It would be a shame if the city lost Klipsch. It's a fine small company!

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