Tweeter To Buy Custom Installer15 Jan, 2002 By: Hive News
Tweeter Home Entertainment Group, Inc. has reached an agreement in principle to buy a two-store specialty retailer Hillcrest High Fidelity, Inc., in the greater Dallas, Texas, market for $5,5 million cash and stock deal.
"Hillcrest is very highly regarded in Dallas as the place to go for upscale consumer electronics and home systems integration and they have relationships with 30 builders in the Dallas-Ft. Worth area," said Jeffrey Stone, Tweeter's president and CEO.
The companies expect to complete the transaction around March 1.
Hillcrest, which has operated in Dallas for 53 years, focuses on custom installation and has annual sales of about $14 million.
Tweeter expects to fund the acquisition with a combination of cash and stock and intends to issue these shares from its shelf registration filed on April 13, 1999, and amended on Dec. 23, 1999. The transaction will be accounted for as a purchase.
"The Hillcrest acquisition gives an immediate boost to our in-home installation expertise, not only in Dallas but helps our national team as well," Stone said. "It brings our store count to six in the Dallas market and with other new stores planned, our store count should be eight by the end of our fiscal year and 10 by the end of the calendar year."
Hillcrest principals Tom Kissell and Michael Gallant have each been in the industry for 14 years and have done a terrific job positioning themselves in a niche above both the mass merchant and the specialty retailer. Hillcrest will remain an independent division and both gentlemen will remain in their current roles at Hillcrest and will help us continue our concentration on the home installation side of the business - both in Dallas and nationally.
The Sound Advice management team will play a major role in the operation of this business and will integrate the purchasing, marketing and installation business into the larger organization.
Tweeter operates 155 stores under the Tweeter, HiFi Buys, Sound Advice, Bang & Olufsen, Electronic Interiors, Showcase Home Entertainment and Great Indoors Home Theater names in the New England, Texas, Southern Calif., Mid-Atlantic, Illinois, the Southeast, Florida and Phoenix markets respectively and has more than 3,500 employees.