Vista, CA–Directed Electronics Inc. has entered into a definitive agreement to acquire Polk Audio. The purchase is the company’s second speaker-brand acquisition in as many years, making it the top home-speaker brand in dollar volume at retail, according to the company.
Current Polk management will be joining the Directed team after the acquisition, which is priced at approximately $136 million in cash and is scheduled to close during the third quarter of 2006.
The acquisition of Polk, with its leading consumer brand, complements our current Definitive Technology product line and having these two powerful brands under the Directed umbrella will give us the No. 1 position in the U.S. home speaker market according to industry data,” said Jim Minarik, president and CEO of Directed. “We look forward to working with the Polk team to expand our home audio business.”
Founded in 1972, Polk sells its products in key channels of home electronics distribution including Circuit City, Tweeter, Fry’s Electronics, Crutchfield, and AVAD distributors.
“We have worked hard to build Polk into a profitable leader in home and mobile audio,” stated Jim Herd, president of Polk Audio. “We believe the Polk brand is positioned for continued growth through our existing customer base, as well as through the introduction of innovative entertainment products for both the home and vehicle environments. We look forward to partnering with Directed to build our business together.”