STAMFORD, CT – Harman International (HARMAN) (NYSE:HAR), the global premium audio and infotainment group, said today that it has reached an agreement in principle to acquire Eletrônica Selenium S/A of Nova Santa Rita, Brazil, a leading provider of professional and consumer audio solutions. The deal is subject to final documentation and is expected to close within four to six weeks.
“We look forward to welcoming the world-class technologies and talented employees of Eletrônica Selenium to the HARMAN organization,” said Dinesh C. Paliwal, Chairman, President and CEO. “This acquisition will be an excellent fit to grow both our professional and consumer businesses and add some robust distribution channels with which to serve the fast-growing Latin America markets. Our products and technology philosophies are highly complementary, and we look forward to helping Eletrônica Selenium unlock new business potential.”
“We are excited at the prospect of further energizing Eletrônica Selenium’s offering with HARMAN brand and technology expertise,” said Mr. Rodrigo Rihl Kniest, Selenium Chief Executive Officer. “Harman’s legendary brands are extremely popular in Brazil and we look forward to leveraging this brand power through our strong distribution channels. Our customers expect increasingly advanced audio solutions and HARMAN’s rich portfolio across the automotive, consumer and professional markets will enable us to drive new business opportunities.”
Eletrônica Selenium, founded in 1958, manufactures and sells professional loudspeakers including line arrays, screen and portable systems, along with related technologies for both the public sound reinforcement sector and automotive aftermarket. The company is primarily focused on the premium market segment and is a leader in the professional loudspeaker business in Latin America. Recent Eletrônica Selenium installations include the Pan American Games in Sao Paulo, the Cartagena Music Festival in Colombia, the Madrid Music Festival, as well as numerous cinema, retail and infrastructure facilities.
The closely-held company is expected to have annual sales of approximately $60 million for the current calendar year and employs nearly 350 people at its combined 250,000 sq. ft. manufacturing facilities in northern and southern Brazil. The company also has sales offices serving the US and Europe. Eletrônica Selenium’s market channels include a network of more than 30 distributors across Brazil and two distribution and logistics centers in the US. The company is also active in e-commerce transactions for both procurement and sales, utilizing the Mercador® system which is the largest B2B online platform in Latin America.
HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets – supported by 15 leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 20 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 11,000 people across the Americas, Europe and Asia, and reported sales of $3.2 billion for the last twelve months ended March 31, 2010. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.