Plantronics to Acquire Sparkomatic, er, Altec Lansing Technologies.

[Todd W. White]

This is INTERESTING. My guess is ALPro won't survive the merger, or will be phased out soon thereafter.

From The Wall Street Journal:

Plantronics to Acquire Altec Lansing

Acquisition of Leading Audio Entertainment Brand Strengthens Plantronics' Ability to Provide Complete Audio Solutions for Both Consumers and Retailers

Santa Cruz, Calif. - July 11, 2005 ? Plantronics, Inc. (NYSE: PLT) today announced it has signed a definitive agreement to acquire Altec Lansing Technologies, Inc., a market leader in portable and powered audio systems. The agreement will unite two leading audio brands with rich heritages and complementary strengths.

Under the terms of the agreement, Plantronics will acquire all of the capital stock of Altec Lansing for a cash purchase price in total of approximately $166 million. Following the close of the transaction, the resulting wholly-owned subsidiary of Plantronics will be called Altec Lansing Technologies, Inc.

"The combination of our expertise in voice communication and Altec Lansing's in music entertainment enables us to meet the full audio needs of the consumer, in their personal and professional lives," said Ken Kannappan, president and CEO, Plantronics, Inc. "We've been exploring audio entertainment possibilities for some time. The acquisition of Altec Lansing, with its product portfolio strength and brand reputation, dramatically accelerates those plans at a time when the technology and momentum in convergence is there for us to leverage."

Altec Lansing will remain in Milford, Pennsylvania, functioning as a division of Plantronics. Gary Savadove, former GE Consumer Electronics executive and CEO of Labtec, joined Plantronics six months ago and is president and CEO of the Plantronics Audio Entertainment Business Group which will now incorporate Altec Lansing. Bob Garthwaite, who has served as senior vice president of marketing and sales for Altec Lansing, will become president and CEO of Altec Lansing after closing of the agreement.

Altec Lansing, with more than $100 million in revenue in calendar 2004, brings to Plantronics a comprehensive range of products and an established market presence in portable and powered audio. Its award-winning inMotion portable speaker systems have become one of the biggest successes of the iPod economy. Just last month, CNET said the following about the new inMotion iM7 iPod speaker system: "Altec Lansing has emerged as a heavyweight in [the iPod speaker] department, anchored by its inMotion series of portable speakers, and its latest innovation, the inMotion iM7, takes the iPod to new heights. It should set the bar for future truly portable speakers. Sound quality is powerful and rich, the device is portable and flexible, and it just looks good."

In addition, Altec Lansing offers a wide range of computer and home entertainment sound systems and a line of headphones and headsets, allowing Plantronics to provide a more complete product portfolio to its combined retail and OEM channels worldwide.

"From the beginning, we recognized that we complemented Plantronics extremely well, from both corporate and product perspectives," said Bob Garthwaite, senior vice president of marketing and sales, Altec Lansing. "Both companies go back forty years or more in their focus on audio quality. Between us, we understand the technical needs of the professional market and the lifestyle demands of the consumer market. And when you look at the growth potential for devices like music-enabled handsets and cellular music decks, the synergies and opportunities become crystal clear."

"Ultimately it was evident that we shared a common vision with Altec Lansing," Mr. Kannappan concluded. "Both companies were moving toward the immense opportunity for long-cycle growth and innovation created by the unison of digital voice and music technology. Together we're much stronger and better positioned to achieve that vision."

We expect that, excluding non-cash acquisition-related and amortization charges, the acquisition will be accretive to Plantronics earnings in FY06. Including non-cash acquisition related and amortization charges, interest expense and lost interest income, we do not currently expect the transaction to be significantly dilutive or accretive to EPS for FY06 as a whole. Finally, including non-cash acquisition related and amortization charges, interest expense if any and lost interest income, we expect the acquisition to be accretive to EPS in FY07.

Houlihan Lokey Howard & Zukin served as exclusive financial advisor to Altec Lansing.

Plantronics stockholders are invited to participate in a conference call that will begin at 2pm PDT. To listen please dial in five to ten minutes prior to the scheduled starting time and refer to the "Plantronics Conference Call." Participants from North America should call (888) 301-8736 and other participants should call (706) 634-7260.

A replay of the call with the conference ID #7739057 will be available for 1 week at (800) 642-1687 for callers from North America and at (706) 645-9291 for all other callers. The conference call will also be simultaneously web cast at www.plantronics.com under Investor Relations; the web cast of the conference call will be available at the Plantronics website along with the slide presentation for the conference.

About Plantronics
Plantronics introduced the first lightweight headset in 1962 and is recognized as the world leader in communications headsets. A Plantronics headset was used for Neil Armstrong's historic "One small step for man, one giant leap for mankind" transmission from the moon in 1969. A publicly held company headquartered in Santa Cruz, California, with more than 4,500 employees, Plantronics maintains offices in 20 countries. For more information go to www.plantronics.com or call (800) 544-4660.

About Altec Lansing Technologies, Inc.
Altec Lansing Technologies, Inc. has a rich legacy of blending art and science to stir the soul with high quality consumer and professional speaker systems. A market leader in portable and powered audio systems, Altec Lansing designs, manufactures and markets a wide range of computer and home entertainment sound systems and a line of headsets and headphones. Headquartered in Milford, PA, USA and privately held, Altec Lansing has offices in Oklahoma City, OK; Luxembourg, and Hong Kong. The company employs approximately 1,350 people worldwide.

[Carl Bill]

So you don't think Plantronics has any interest in getting Altec back into the pro audio game? It would be nice if Altec could be resurected. I guess some things must die. But with all the folks here, it shouldn't fade away too soon.

Thanks Todd!

[Mike Gibson]

With all the hyperbole and hot air in that press release they could generate enough steam to run a 1000 Megawatt generator for a month Sounds to me like two chintzy companies trying to make it big on small sound. I think it would take a company with more dedication than that to resurrect Altec.

[bfish]

I can't help but wonder "what if" all of the money spent on acquiring the rights to the Altec name in the last 20-or-so years could have been available to the real Altec when it was needed. It's a real shame that we, as consumers, have apparrently sent the message to the powers-that-be that we prefer the illusion of quality (at discount prices) to the real McCoy. If today's 'junk' is to become desireable in the future as 'vintage gear', I don't think I want to be there.

On a more tangible note, I certainly hope this transaction causes no hardship for Bill and GPA through loss of sales of current-production parts, and that the demand for parts by those of us that know and appreciate the difference will be sufficient for a profitable enterprise.

Progress, my A**!

[tomt]

in the event 'altec pro' disapears perhaps some body more quality orented
might grasp the Reins of Altec, for a better sounding future

[LICORNE]

ALTEC LANSING A company that contributed to the community for decades did not receive anny help
from local governments is beyond anny comprehention . Subsidies and tax relief or grants are democratic tools used by all competing nations .

Outsourcing our labour to China hurts the average worker but the Brand name and the profits remain
in the U.S.A..It will take decades for china to develop their own brand names.

The Japanese model is proof of that.

[Carl Bill]

The Chinese are trying to aquire the brands of Maytag and Hoover right now!

[joyspring]

The Chinese are trying to aquire the brands of Maytag and Hoover right now!

<font size="2" face="Verdana, Helvetica, sans-serif">And why shouldn't they? So long as they comply with US law, there's nothing wrong with that at all.

It always struck me as quite curious why there seems to be a lot of China-bashing on this forum...

Look: China is NOT to blame for the indignity of her purchasing US brands, displacing US jobs/industry...

The sole blame lies with the US, in business, finance and consumers. It's not China's fault that US business - in order to fulfil their fiduciary `duty' to increase shareholder value - shortchanges US workers and decimates large segments of US industry. And it's not China's fault that consumers seek out cheap Chinese-made goods at big-box stores (a la Wal-Mart) based on price alone.

And it's certainly not China's fault that the US spends US$500 billion (over 50% GDP) on an overbloated military that garrisons over 100 sovereign nations and uses war to secure resources. True free market advocates would entrust supply/demand and trade to set pricing whereas fascists depend on military might.

The Founding Fathers would be appalled...

Note that it is often US `Patriots' that espouse the Wall Street values of pure individualism where selling out your neighbour is good - even commendable - if it promotes individual gain.

A uniquely American twist on the Puritan work ethic.

And rather childish that Americans feel that they deserve everything for nothing.

Anyhow, the central banks of China and Japan are purchasing US bonds like wildfire, financing our profligate spending and tax cuts and military-industrial complex. It's not too much of a stretch to say that our economic future is in foreign hands really...

And to reiterate, this is not China's fault -- it is strictly American.

BobR

[joyspring]

ALTEC LANSING A company that contributed to the community for decades did not receive anny help
from local governments is beyond anny comprehention . Subsidies and tax relief or grants are democratic tools used by all competing nations .

<font size="2" face="Verdana, Helvetica, sans-serif">Altec Lansing isn't Boeing. Altec Lansing never had so many lobbyists in DC as defense contractors, airline, oil/energy, or banking/finance industries.

Outsourcing our labour to China hurts the average worker but the Brand name and the profits remain
in the U.S.A..It will take decades for china to develop their own brand names.

<font size="2" face="Verdana, Helvetica, sans-serif">True, outsourcing does hurt the average US worker; however, they will be maligned as lazy, unionised and unproductive and so deserve what they get - according to business and the media of course which defends outsourcing.

US brand names are simply sales forces for foreign made - and increasingly foreign-designed - goods.

Have a look at commentary by former Asst. US Treasury Secretary (under Reagan) Paul Craig Roberts for insight on how our `Patriotic' US business community is undermining the US.

BobR

PS - it's not China's fault - blame solely lies with the US.

[bfish]

Ditto BobR!

Living almost within view of the WalMart General Office (an entity I loath), many of those I know are (unknowingly?) actively involved. My neighbor's wife is a "fashion buyer", and knocks down in excess of $100K annually, to purchase examples of clothing items she feels will become or remain in style, which she regularly packs up and takes to China, to be "knocked off" and mass-produced in their sweat shops, and subsequently sold in your neighborhood WalMart. Repeated attempts to convince her that she's helping to "knock the blocks out" of our nation's foundation always fail; as long as she makes the big $, it's none of her concern!

I do feel that ultimately the blame for the situation still lies with us, the consumer, as does the solution. For example, how long would gas prices remain at $2-3, if EVERY car in the country remained motionless for a single weekday? That's right, shut it all down, no one goes to work (or play), at least in a fuel-driven vehicle! Results would be satisfying and immediate, BUT, IT'LL NEVER HAPPEN, AS TOO MANY AMERICANS HAVE NEITHER THE CONVICTION NOR THE WILL POWER TO SEE IT THROUGH! I think another "Tea Party" is long overdue. As long as we, the people, trust our fates to the current corporate-backed 'elected' (what a joke!) officials, we can only expect things to get worse!