Audiovox, a dealer in the marketing of automotive entertainment, vehicle security and remote start systems, consumer electronics and accessories, announced it completed the acquisition of Klipsch Group, a provider of audio solutions, for $166 million.

The deal will generate $170 million in net sales and $25 million in EBITDA in fiscal 2012.  The company expects combined revenue of $730 million. The acquisition of Klipsch and its global subsidiaries is expected to be immediately accretive to cash flow and earnings per diluted share.

“We are very excited to close this acquisition because it not only adds world-class brands with strong distribution, both domestically and abroad, but it also gives us entre into the high-end installation market at both the residential and commercial level,” said Patrick Lavelle, president and CEO of Audiovox Corporation.

The Klipsch brands have dominant position in the U.S. These brands also have recognition throughout EMEA, the Americas, and the Asia-Pacific region. The company will continue expansion into other key international markets. Audiovox will leverage Klipsch’s R&D capabilities.

“I am excited about this acquisition and have no doubt that together we will successfully execute on our growth plans, expand our market positions in both our core areas and new markets, while never losing sight of the brand, the quality and our customers,” said Fred Klipsch, chairman and CEO, Klipsch Group.

“Klipsch will always be dedicated to providing consumers with the best speaker solutions the industry has to offer, while supporting our worldwide customers at the very highest level,” Klipsch added.

As part of the transaction, Klipsch has become a wholly owned subsidiary of Audiovox Corporation and will operate as a stand-alone entity, headquartered in Indianapolis and run by its current management team.

This deal was financed through a combination of existing Audiovox cash and a new $175 million asset-based revolving credit facility led by Wells Fargo (News - Alert) Capital Finance. The combined assets of Audiovox and Klipsch will secure the borrowings under the facility, which will also be used for general corporate purposes.

In August 2010, Audiovox announced that it unveiled the new Audiovox 7-inch portable DVD player with FLO TV from which movie enthusiasts can access live mobile television.