Audiovox to Buy Recoton’s Assets Jun 5, 2003

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Audiovox Corporation Tuesday announced that its bid for the assets of Recoton Corp. has been accepted by the U.S. Bankruptcy Court for the Southern District of New York. The assets include Recoton’s U.S. audio operation—Jensen, Advent, and Acoustic Research—and the shares of Recoton German Holdings GmbH. Audiovox will reportedly pay U.S. $40 million and assume a $5 million debt.

The transaction will reportedly create one of the largest U.S. audio suppliers of mobile entertainment products. The components of Recoton’s U.S. audio operation will join Audiovox’s existing brands: Audiovox, Prestige, and Rampage.

According to John J. Shalam, chairman of Audiovox Corp., Recoton’s U.S. audio business is to be assimilated into Audiovox Electronics Corp (AEC). He adds, "The deal made sense because of the synergies that exist in our product lines, customer base, and business practices, and we expect it to be accretive from the onset and to generate additional revenue of between $70 and $100 million in the first year of our ownership."

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