CLIFTON, NJ – July 17, 2004– Dutch consumer electronics giant Royal Philips Electronics has agreed to purchase Gemini Industries in a blockbuster deal that is intended to move one of the largest U.S. broad line accessories companies solidly into the global marketplace.
The two companies signed an agreement last week whereby Philips, the long-time licensor of Philips- brand accessories to Gemini, will acquire the New Jersey-based supplier. Financial details of the acquisition were not disclosed.
Gemini— which supplies accessories for the audio, video, computing, gaming, digital imaging and telephony markets in the United States under the Philips, Zenith, Magnavox, Southwestern Bell and For Dummies brands— offers about 2,500 products. The privately held company, which recorded 2003 gross sales of about $200 million, employs about 500 people.
Through the acquisition of Gemini, Philips, which has its U.S. headquarters in Atlanta, said it will significantly grow the peripherals and accessories business activities on a global scale.
The current acquisition is designed to provide Philips and Gemini with an opportunity to broaden Gemini’s scope into Europe, better serve the global retailers’ needs, and leverage internal synergies between the two companies, said Philips, which has been a supplier to Gemini for the past eight years and has licensed its Philips-brand products as part of Gemini’s product portfolio.
As for changes that retailers will see, Gemini has no plans to cease using the existing brands that the company carries, with the most significant change for retailers being Gemini’s stronger ability to bring new products and different products to them under the Philips brand name. This will be accomplished by creating new products or by adding what Philips is selling in Europe, said Philips. All existing contracts are going to be honored and Gemini will continue to carry all existing brands, said Philips.
About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc. Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.