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CLIFTON, NJ. - 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, and subject to regulatory approval, the deal is expected to be finalized in August.
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.
At the same time, this newest partnership parallels a year-ago deal, when Frances CE maker Thomson - already a major competitor with Philips - purchased Recoton, another U.S. broad line accessories company.
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...