VOXX International Corporation Announces Definitive Agreement To Acquire Car Communication Holding GmbH, A European Leader In Automotive Communications And Infotainment Solutions

HAUPPAUGE, N.Y., Feb. 9, 2012 /PRNewswire/ -- VOXX International Corporation (NASDAQ: VOXX) announced today that it has entered into a definitive agreement to acquire Car Communication Holding GmbH and its worldwide subsidiaries ("Hirschmann" ) for total consideration of euro 85 million, subject to certain contingencies and adjustments, plus related transaction fees and expenses.  Hirschmann, headquartered in Neckartenzlingen, Germany, is a leading supplier of communications and infotainment solutions, primarily to the automotive industry, and counts among its global customers, Audi, BMW, DAF, Daimler, PSA, Renault, and Volkswagen Group, among others.  Hirschmann will become a wholly-owned subsidiary of VOXX International.

This acquisition is expected to be financed with a new revolving credit facility and term loan from Wells Fargo Bank, N.A.  Subsequent to the close of the transaction, VOXX International expects to have excess availability under the revolving credit facility for general corporate purposes.  There can be no assurances that this, or any other transaction, will be completed or as to any terms that may be negotiated.

This transaction is expected to be accretive to cash flow and earnings per diluted share ("EPS") in fiscal 2013, inclusive of all costs for financing.  The Company noted that in CY11, Hirschmann sales were approximately euro 140 million and that both sales and EBITDA are expected to increase in the coming year based on existing OEM agreements and future opportunities.

Patrick Lavelle, President and CEO of VOXX International, stated, "The acquisition of Hirschmann meets the criteria I had previously laid out and is a natural fit for our Company as we further expand our OEM automotive business.  Hirschmann has been supplying automotive manufacturers for nearly 70 years and is a recognized leader in both antenna solutions and mobile tuners with strong, long-term OEM relationships."

Lavelle continued, "Their capability and existing worldwide digital TV tuner business holds great potential for us as we near deployment of MDTV in the US and we believe it will enhance our overall rear seat entertainment business.  Additionally, their strong antenna engineering and R&D resources coupled with our existing RCA, Terk, and Schwaiger capabilities will allow us to expand antenna development and strengthen our position as a leading worldwide supplier."