On Sept. 30, VOXX International Corp. received notification from the HF Company that HF is rescinding the June stock purchase agreement for VOXX German Accessories Holdings (VGAH). According to an Oct. 4 filing with the SEC, HF’s move is related to its inability to obtain financing for the transaction purchase price.
The deal called for VOXX to sell VGAH, which is comprised of Oehlbach Kabel and Schwaiger GmbH, to HF for approximately $19 million. VOXX will now retain the Oehlbach and Schwaiger operations, and will continue to market and distribute their accessory offerings.
The cancelation of the agreement also has led to the rescission of an option to purchase VGAH’s property in Langenzenn, Germany.
“We took action in fiscal 2019 to reorganize our international business and consolidate the operations of Schwaiger and Oehlbach into one operating entity. 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,” President and CEO Pat Lavelle said in an Oct. 2 announcement. “Our strategy to potentially divest and acquire assets remains intact, and our No.-1 focus remains to position VOXX for improved and sustainable profitability in the years ahead.”
In related news, VOXX has sold its Pulheim, Germany, real estate and received roughly $9.70 million in net proceeds after the payment of outstanding mortgage and transactional costs.
VOXX is a global manufacturer and distributor of automotive and consumer technology.