The company, whose brand portfolio includes leading professional audio brands including JBL, BSS, Soundcraft, AKG, dbx and Crown, will continue to be named Harman International Industries and Dr. Sidney Harman, founder and executive chairman, will remain executive chairman.
Dr. Harman stated: "We are pleased to reach an agreement with KKR and GSCP that is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in Harman's future growth. KKR and GSCP are two of the world's leading private equity investors and our Board of Directors strongly believes that this transaction will create attractive long-term opportunities for our employees, customers and business partners. Together, we will continue to execute our strategic plan, capitalize on new opportunities, and build on our history of product innovation and service excellence."
Completion of the transaction, which is expected to occur in the third quarter of 2007, is subject to the approval of Harman stockholders, customary closing conditions and regulatory approvals. The Board of Directors of Harman has unanimously recommended that Harman stockholders vote in favour of the transaction.
• The announcement of the acquisition followed on the heels of Harman International Industries' announcement of record results for the three and nine month periods ending 31 March 2007. Net sales for the third quarter were $882.8 million - 10% up on the same period last year. Net income for the three-month period increased 11 percent to $71.0 million. For the nine months ending 31 March 2007, net sales were $2.64 billion - 11% up on the prior year period; net income increased 10% to $209 million.
Harman reported that sales increased uniformly across all its operating segments: Automotive sales were $624.9 million for the third quarter, an increase of 10% over the same period last year, while Consumer sales and Professional sales also increased 10% to $118.0 million and $139.9 million, respectively.
(Lee Baldock)
