Yesterday afternoon, French electronics maker Thomson SA announced that it has signed a definitive agreement to sell its consumer electronics Audio-Video (AV) activities to Audiovox Corporation as part of the process of shifting its focus to providing services and technologies to the media and entertainment industries.
Here are the key points:
- Completion of the sale is expected to take place on December 31, 2007.
- Purchase price is $19.7 million, plus a net asset payment, plus a five- year fee related to the RCA brand in the consumer electronics audio video product field.
- Proposed acquisition to add approximately $150 million in annual sales as well as the ability to generate royalty income and should positively impact fiscal 2009 results.
- Company to acquire the rights to the RCA brand for consumer electronics audio video products.
- Thomson also plans to close its European audio-video and accessories business, except for its German Skymaster unit, which is in talks with potential buyers.
NOTE: Thomson's AV business has 65 employees at its