Gemini Industries Completes Acquisition of Zenith Accessories Business
Clifton, New Jersey - Gemini Industries, Inc. today announced that it has completed its acquisition of the assets of Zenith Electronics Corporation's accessories business. Zenith Accessories is a leading suppler of consumer electronics accessories, including a broad line of universal remote controls, antennas, surge protectors, blank media, security cameras and other products. Under the agreement, Gemini entered into a long-term brand licensing relationship as well as acquired all the assets of the Zenith Accessories business, including its inventory and accounts receivables. Terms were not disclosed.
"Our goal in selling this business is two-fold--to further increase the focus on our core digital strategy while finding a partner that will continue to grow the Zenith-branded accessories business, sharing the same Zenith brand strategy," said T.J. Lee, Zenith President and C.E.O. Michael O'Neal, President and C.E.O. of Gemini Industries, said, This acquisition creates exciting opportunities for our company. It combines the strengths of two industry leaders Zenith's extraordinary brand and aggressiveness in pursuing related consumer electronics innovations with Gemini's superior logistics and accessory management skills across a wide range of products. Almost immediately," said Mr. O'Neal, the transaction allows Gemini, and its customers, the opportunity to take advantage of new products currently within the Zenith Accessories development pipeline. Gary A. Nacht, Vice Chairman of Gemini Industries, said, "This transaction fits the profile of the strategic opportunities Gemini seeks. It has a strong brand name, complements the current Gemini product profile and expands the Gemini customer base.
Zenith Electronics Corporation is a long-time leader in consumer electronics and a primary developer of digital HDTV. Armed with advanced display technologies form its parent company, LG Electronics, Inc., Zenith is committed to becoming the digital leader.
Gemini Industries, Inc. is a leading manufacturer and distributor of consumer electronics accessories marketed under many of today's prominent brand names, including Philips®, Philips Magnavox®, Magnavox®, Southwestern Bell Freedom Phone® and now Zenith®. Gemini's customers include the nation's leading home improvement stores and mass merchants, representing more than 20,000 retail locations. Gemini was acquired in June 2000 by York Management Services, Inc., a privately held investment and management company.
Lincoln Partners initiated this transaction, assisted in the negotiations and acted as financial advisor to Zenith Electronics Corporation.