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Bosch Acquisition Announcement
The Bosch Group has announced that it plans to acquire Telex Communications, which will be assigned to and come under the leadership of the Bosch Security Systems division. This move will strengthen the company’s position in the worldwide market ever further: last year, Telex posted $308 million in sales and employs 2,000 associates in nine countries.
Based in Minneapolis, MN, Telex Communications is a leading manufacturer and supplier of professional audio, wireless, life safety and communication equipment. The systems are installed in a wide range of applications, such as large stadiums and airport projects, where customers are increasingly asking for turnkey solutions combined with security systems. The company is home to such well known brands as ElectroVoice, Dynacord, Midas, Klark Teknik, Telex, and RTS.
“With the acquisition of Telex, Bosch Security Systems can significantly expand its communications systems product offerings and penetrate the professional audio equipment market. The strength of the Telex distribution network will enhance our worldwide market position as a provider of comprehensive security and communication systems. At the same time, we obtain a leading position in the American market,” says Bosch Board of Management member Peter J. Marks, who bears regional responsibility at the corporate level for the Americas and for the Security Systems division.
In 2005, Bosch Security Systems generated sales of approximately $1.25 billion from its intrusion and fire alarm systems, video surveillance, access control, and communication systems business. With some 7,800 associates, the division is represented at more than 40 locations in Europe, the Americas, and Asia Pacific.
“Telex Communications is a company with a heritage. It stands for high quality and customer orientation. The acquisition of Telex Communications by a forward-looking company such as Bosch will give our associates an opportunity to develop further in a growth-driven environment,” says Ray Malpocher, CEO of Telex Communications.
The agreement provides for an aggregate purchase price of $420 million, includes the assumption of Telex indebtedness, subject to certain post-closing adjustments, and also provides for the satisfaction and discharge of the publicly held indebtedness of Telex and its affiliates. The merger agreement has been approved by the Board of Directors of Telex and the Board of Management of Bosch, and has also been approved by the requisite percentage of Telex's voting stockholders. The transaction is subject to receipt of certain regulatory approvals.
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