Voxx International’s deal to sell its German accessory business has fallen through and it will continue to operate these entities as one unit.
The Hauppauge-based company said it received what’s known as “a notice of rescission” from HF Company regarding a definitive agreement to sell VoxxGerman Accessory Holdings GmbH.
Voxx on June 12, 2019 said it reached a definitive agreement to sell that business, including Oehlbach Kabel and Schwaiger, to HF Co., for $19.0 million.
But it now says that HF Co. couldn’t secure bank financing for the deal, so Voxx will retain the Oehlbach and Schwaiger operations and continue to market and distribute their accessories. Voxx already consolidated the German brands into one operating entity.
“Based on the changes previously announced to realign these units into one operating entity,” the company said, “it will be in a stronger position to improve bottom-line performance of an already profitable unit.”
The company also said the brands had been performing well - and expects them to be even more profitable as part of a single, over-arching unit.
“While the proposed accessories transaction would have further strengthened our balance sheet, we are satisfied to keep these strong European brands as they have been consistent earnings contributors in the past, and we expect that will continue in the future,” CEO Pat Lavelle said
He said, however, that the company is looking at both selling and acquiring assets to boost earnings and pointed to another deal that will bring cash in the door.
The company also said it closed on the sale of its Pulheim real estate, resulting in $9.7 million in net proceeds.
“Our strategy to potentially divest and acquire assets remains intact,” Lavelle said. “And our No. 1 focus remains to position Voxx for improved and sustainable profitability in the years ahead.”