VOXX International Corporation announced that it has closed on its previously announced sale of Hirschmann Car Communication GmbH and its worldwide subsidiaries to a subsidiary of TE Connectivity Ltd. The deal included a production plant in Queretaro that manufactures antennas and components for communication and data transmission.
VOXX International received approximately US$ 170.0 million upon closing based on the terms of the sale and forward contracts. There may be additional proceeds received by VOXX, which will be based upon final working capital adjustments to be calculated within 75 days.
Pat Lavelle, President and CEO of VOXX International Corporation stated, "With this transaction closed, we are now in position to pay down our debt in full, which will save us more than US$ 6.0 million in interest payments annually, while providing us with cash on hand and full access to our banking facilities to support our business and pursue a targeted M&A strategy.”
VOXX will continue to operate in the Automotive industry and will retain its ongoing OEM business that is not part of this transaction through VOXXHirschmann Corporation. The Company will also continue its Automotive Aftermarket business through its proprietary brands and 3rd-party distribution agreements.
The continuing operations include the Company's market-leading rear-seat infotainment solutions, car security and remote start systems, remote start modules, app-based vehicle security solutions, keyless entry products and its newest innovation, the eFob, satellite radio products, and telematics, among others.
Business lines that will be sold as part of this agreement include Hirschmann's antenna, smart antenna, multi-digital tuner and commercial asset tracking business, which incorporates various technologies and product lines. Under the terms of the agreement, VOXX International will phase out the VOXXHirschmann name over a period of two years.