Plantronics, Inc. (NYSE: PLT) today announced its sale of Altec Lansing,
the Audio Entertainment Group (”AEG”) segment, to an affiliate of
Prophet Equity LP, a Southlake, Texas based private equity firm for
consideration of approximately $16.2 million in cash, net of liabilities
assumed, and subject to certain adjustments following the closing. The
transaction was completed effective December 1, 2009. The change in the
consideration from $18 million as previously announced to $16.2 million
reflects the change in the estimated value of net assets being delivered
at closing together with the negotiated after-tax value of income in
November.
Under the terms of the sale, Plantronics will retain certain Altec
Lansing assets and liabilities, including accounts receivable, accounts
payable and certain other liabilities. As a result, Plantronics expects
these net assets to result in additional operating cash flow once the
retained working capital assets are monetized in fiscal 2010.
Plantronics will also retain assets and/or the use of certain assets
with strategic value, including the right to use the Altec Lansing brand
for specific music applications for two years.
As a result of the sale of Altec Lansing, Plantronics expects all future
and historical AEG segment results to be reported as discontinued
operations in its financial statements beginning in the third quarter of
fiscal 2010.
Safe Harbor
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Exchange Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including statements that the Company expects that the net assets
realized from the sale of Altec Lansing will result in additional
operating cash flow once the retained working capital assets are
monetized in fiscal 2010.
There are important factors that could cause actual results to differ
materially from those anticipated by any such statements. These risks
include, but are not limited to: (1) failure to achieve the anticipated
levels of cash flow due to lower sales, increased costs, higher
inventories, slow collection of accounts receivable or other factors;
(2) economic conditions in the domestic and international markets; (3)
our ability to realize our UC plans and to achieve the financial results
projected to arise from UC adoption; and (4) volatility in prices from
our suppliers, including our manufacturers located in China. Plantronics
does not assume any obligation to update or revise any such
forward-looking statements, whether as the result of new developments or
otherwise.
For more information concerning these and other possible risks, please
refer to the Company’s Annual Report on Form 10-K filed May 26, 2009,
quarterly reports filed on Form 10-Q and other filings with the
Securities and Exchange Commission as well as recent press releases.
These filings can be accessed over the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html.
About Plantronics
Plantronics is a world leader in personal audio communications for
professionals and consumers. From unified communication solutions to
Bluetooth headsets, Plantronics delivers unparalleled audio experiences
and quality that reflect our nearly 50 years of innovation and customer
commitment. Plantronics is used by every company in the Fortune 100 and
is the headset of choice for air traffic control, 911 dispatch and the
New York Stock Exchange. For more information, please visit www.plantronics.com
or call (800) 544-4660.
About Prophet Equity
Prophet Equity is a private equity firm that uses proven, data-driven
analytical techniques coupled with over 100 years of investment and
management experience to invest in, unlock and realize future value
today. Partnering with owners and management teams, Prophet Equity’s
team utilizes a toolkit that is Fortune 500 tested and private equity
proven to diagnose and drive dramatic value creation. Portfolio company
management teams are highly motivated with clear, uncapped incentives
based on realized business performance.
Over the last decade alone, Prophet’s Principals have invested and
managed approximately $300 million of control equity in entities with
over $2.5 billion in revenue. Their control equity investments focus on
lower and middle market companies with strategically strong businesses
with significant value creation potential, such as those found in
partnerships, corporate carve-outs, divestitures and non-strategic
businesses of larger companies. Representative business situations
include special situations, succession planning, recapitalizations,
reorganizations, turnarounds, acquisitions, mergers and bankruptcies.
For more information, please visit www.prophetequity.com
or call us at +1.817.898.1500.
About Altec Lansing
For more than 70 years, Altec Lansing has been viewed among audiophiles
as one of the world’s most valuable and innovative audio brands and
boasts a unique history of innovation that includes the introduction of
first talkie film speakers, the first iPod docking station and the first
“Works with iPhone” speaker system. Altec Lansing makes a wide range of
audio systems for the home and office; a line of headphones for personal
listening; and the popular line of inMotion speaker systems for portable
digital players. Altec Lansing LLC is headquartered in Milford, PA.
For more information on Altec Lansing or to purchase one of our award
winning products, please visit www.alteclansing.com
or call us at +1.866.570.5702.
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