DEI Holdings has completed its deal to sell to private equity firm Charlesbank Capital Partners, the firms said in a joint statement. DEI Holdings, the electronics company that makes, among its other products, Polk Audio home theater systems, was taken private from the Pink Sheets for $4.46 per share in cash, or about $305 million. The company’s existing management will remain in place.
DEI Holdings Announces Completion of Acquisition by Charlesbank Capital Partners
VISTA, Calif., June 21, 2011 — DEI Holdings, Inc. (PinkSheets: DEIX.PK) today announced the completion of its acquisition by funds affiliated with Charlesbank Capital Partners. Under the terms of the merger agreement, each outstanding common share of DEI Holdings was converted into the right to receive approximately $4.46 per share in cash. The total enterprise value of the transaction, including debt repayment, is approximately $305 million.
As previously announced, DEI Holdings will remain headquartered in Vista, California, and maintain its offices in Maryland andCanada. The company will continue to be led by its existing management team, including James E. Minarik, President and Chief Executive Officer, and Kevin P. Duffy, Executive Vice President and Chief Financial Officer.
Michael Choe, a Managing Director of Charlesbank, said: “We are very pleased to participate in the next chapter of the company’s growth. DEI Holdings’ strong management team and brand equity, combined with its proven multichannel strategy, position the company extremely well to expand its business, both in the U.S. and internationally.”
Shareholders of record will receive a letter of transmittal and instructions on how to surrender their shares of DEI Holdings common stock in exchange for the cash consideration. Shareholders of record should wait to receive the letter of transmittal before surrendering their shares. Shareholders who hold DEI Holdings shares in “street name” through their bank, broker, or other nominee will not need to take any action to have their shares converted into cash, as this should be done by their bank, broker, or other nominee.
About DEI Holdings, Inc.
Headquartered in Southern California, DEI Holdings, Inc. is the parent company of some of the most respected brands in the consumer electronics industry. DEI Holdings is the largest designer and marketer in North America of premium home theater loudspeakers (sold under the Polk Audio® and Definitive Technology® brand names), and consumer-branded vehicle security and remote start systems (sold under Viper®, Clifford®, Python®, Autostart® and other brand names). DEI Holdings is also a supplier of mobile audio sold principally under the Polk Audio® and Orion® brand names. DEI Holdings markets its broad portfolio of products through many channels including leading national retailers and specialty chains throughout North Americaand around the world. Founded in 1982, the company has operations in California, Maryland, Canada, Europe and Asia. For more information on the company, visit www.deiholdings.com.
About Charlesbank Capital Partners
Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $2 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $150 millionper transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information on the firm, visit www.charlesbank.com.
Certain statements herein are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including DEI Holdings Inc.’s and Charlesbank’s ability to achieve anticipated benefits of the acquisition, and other factors. The company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.