Plantronics (PLT) Sells Altec Lansing to Prophet Equity for $16.2M in Cash
Plantronics, Inc. (NYSE: PLT) today announced its sale of Altec Lansing, the Audio Entertainment Group 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.
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