Gibson Brands, Inc., has announced that it has signed an agreement with Royal Philips to acquire WOOX Innovations, the audio, video, multimedia and accessories business of Philips. Under the terms of the agreement, Gibson Brands will pay $135 million and a brand license fee, relating to a license agreement, for an initial period of seven years. The deal is expected to close in the second half of this year, subject to customary conditions, including regulatory filings and works council procedures.
Gibson Brands, based in Nashville TN, has in recent years invested in audio brands including Onkyo and TEAC as part of its ambition to become a global leader in music and sound. This transaction will leverage Gibson Brands’ market presence in the U.S. and Japan, and WOOX Innovations’ market strength with Philips-branded audio and home entertainment products in Europe, China, Latin America and other growth geographies.
“This agreement is the most significant step yet in Gibson Brands’ journey to become the largest music and sound technology company in the world,” said Gibson Brands Chairman and CEO Henry Juszkiewicz. “By acquiring Philips’ audio and home entertainment business, our goal is to continue to provide the most exceptional consumer audio products and experiences in the world. I am thrilled to extend the reach of Gibson Brands around the world and to welcome this great team to the Gibson family.”
The video business will stay with Philips until a transfer to Gibson Brands in 2017. Until that time, a distribution agreement will be in place whereby WOOX Innovations will be fully responsible for the marketing and sales of Philips-branded optical video products.