IBJNews

Audiovox agrees to buy local speaker maker Klipsch

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

  • 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!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

  2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

  3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

  4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

  5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

ADVERTISEMENT