The stock value of VOXX International Corporation (NASDAQ: VOXX) has increased by 59.65% to $4.55 lately, marking a significant increase in value. The company’s board of directors made a strategic choice to improve shareholder value, which led to this rise.
VOXX Investigating Strategic Options
The board of directors of VOXX International has taken a noteworthy step by starting to investigate several strategic options. This program is a component of the business’s continuous attempts to increase returns to shareholders.
The board is deliberating on a wide range of possibilities, such as selling the business, selling off certain business units, improving operations, or engaging in other strategic deals.
A committee on strategic deals has been formed to oversee this thorough assessment. This committee has appointed Bryan Cave Leighton Paisner LLP as its legal counsel and Solomon Partners as its financial advisor.
Sale of Assets to Established Inc.
VOXX International has recently signed an Asset Purchase Agreement as part of its plan to reorganize its organizational structure and optimize assets. The business will sell Established Inc. a number of assets under this deal, including the recognizable RCA trademarks and other intellectual property.
It is anticipated that the $25 million deal would close on August 30, 2024, at the latest. VOXX Accessories Corp., a division of the company, will carry on with commercial operations in spite of the asset sale, guaranteeing partners and consumers continued support.
Financial Stability and Strategic Realignment
The sale of these businesses fits in with the company’s overarching plan to focus on its capabilities in the worldwide accessories market, minimize debt, and monetize non-core assets. The corporation hopes to improve its financial situation by selling these properties while keeping its international brands and distribution networks.
In the country, VOXX International is still dedicated to offering its manufacturers and clients the same caliber of assistance. It is estimated that this transaction will be completed by the end of August 2024, subject to customary closing conditions.
