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8-K - FORM 8-K - UNIVERSAL ELECTRONICS INC | a57740e8vk.htm |
EX-2.1 - EX-2.1 - UNIVERSAL ELECTRONICS INC | a57740exv2w1.htm |
EX-99.2 - EX-99.2 - UNIVERSAL ELECTRONICS INC | a57740exv99w2.htm |
Exhibit 99.1
Contacts: Paul Arling (UEI) 714.820.1000
Kirsten Chapman (IR Agency) 415.433.3777
Kirsten Chapman (IR Agency) 415.433.3777
Universal Electronics Acquires Leading Remote Control
Company
- Increases presence in rapidly growing global markets and broadens UEIs customer list -
- Management to hold conference call at 4:30 pm ET today -
Company
- Increases presence in rapidly growing global markets and broadens UEIs customer list -
- Management to hold conference call at 4:30 pm ET today -
CYPRESS, CA November 4, 2010 Universal Electronics Inc. (UEI), (NASDAQ: UEIC) has acquired
China based Enson Assets Limited from CG International Holdings Limited for a net purchase value of
approximately $110 million. Enson, through its wholly owned subsidiaries located in China, C.G.
Development Limited and C.G. Technology Limited is a leading
designer, marketer and manufacturer of remote
controls for original equipment manufacturers (OEMs)
This acquisition further strengthens UEIs leadership position in wireless control technology as
it positions us to benefit from very promising international growth opportunities and significantly
increases our market share in OEMs, stated Paul Arling, UEIs Chairman and CEO. We have a
six-year history working with the C.G. companies, and we are excited
to welcome their employee base,
including experienced management and engineering groups, to UEI. This transaction is also expected
to increase our platform for growth in Asia, one of the worlds most rapidly growing regions where
we expect to expand our market share in OEMs and subscription broadcasting. This acquisition will
also strengthen our customer list with key industry-leading consumer electronics companies
including Sony, Panasonic and Toshiba.
In addition to the strategic value gained by the transaction, the financial terms of the
acquisition as defined in the definitive agreement are extremely attractive for UEI, and we expect
the acquisition to be immediately accretive, stated Bryan Hackworth, UEIs CFO. While we have
historically given guidance for the coming fiscal year in February, our current forecast shows that
this acquisition will add at least $140 million to our sales total and at least $20 million in
operating income, leading to more than $1.00 in EPS accretion in fiscal year 2011. We will, as has
been our custom, provide greater detail to our overall forecast when we disclose our fourth quarter
2010 results in February 2011.
The transaction is valued at approximately $110 million. To purchase C.G., excluding transaction
and related expenses, UEI will deliver 1.46 million shares of common stock and pay $95 million in
cash. UEI will receive net assets of $68.5 million, including
approximately $15 million in cash at
closing. Post transaction, UEI expects to have a cash and debt balance of $35 million each. The
financing used for the transaction will carry a variable interest rate, which is currently at
approximately 1.8%.
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Third Quarter 2010 Conference Call Information
Management will host a conference call at 4:30 p.m. ET, Thursday, November 4, 2010 to discuss and
answer questions about its third quarter 2010 earnings results as well as todays announcement of
the acquisition of Enson Assets Limited.
To access the call in the U.S. please dial 877-655-6895 and for international calls dial
706-758-0299 approximately 10 minutes prior to the start of the conference. The conference ID is
18361101. The conference call will also be broadcast live over the Internet and available for
replay for one year at www.uei.com. In addition, a replay of the call will be available via
telephone for two business days, beginning two hours after the call. To listen to the replay, in
the U.S., please dial 800-642-1687 and internationally, 706-645-9291. Enter access code 18361101.
About Enson Assets Limited
Enson Assets Limited, through its wholly-owned subsidiaries C.G. Development Limited and C.G.
Technology Limited, is principally engaged in the design, development, manufacture and sale of
remote control units. The manufacturing business commenced with the establishment of the Panyu
Plant in 1992. C.G. is a global market leader in the manufacturing of remote control units with a
renowned global customer base, which is comprised of industry leading brands of home appliance and
consumer electronic companies.
About Universal Electronics Inc.
Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control
technology for the connected home. UEI designs, develops, and delivers innovative solutions that
enable consumers to control entertainment devices, digital media, and home systems. The companys
broad portfolio of patented technologies and database of infrared control software have been
adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and
computing industries. UEI sells and licenses wireless control products through distributors and
retailers under the One For All® brand name. UEI also delivers complete home control solutions in
the professional custom installation market under the brand name Nevo®. For additional
information, please visit our website at www.uei.com.
Safe Harbor Statement
This press release contains forward-looking statements that are made pursuant to the
Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and
expressions reflecting something other than historical fact are intended to identify
forward-looking statements. These forward-looking statements involve a number of risks and
uncertainties, including the ability of the Company to successfully integrate the operations of
Enson and its subsidiaries into our operations, the failure of Enson to perform in accordance with
our expectations; our inability to obtain orders or maintain our order volume with new and existing
customers; general economic conditions; and other factors described in the Companys filings with
the U.S. Securities and Exchange Commission. The actual results that the Company achieves may
differ materially from any forward looking statement due to such risks and uncertainties. The
Company undertakes no obligations to revise or update any forward-looking statements in order to
reflect events or circumstances that may arise after the date of this release.
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