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MyerEmco, Harvey Electronics Merger Is Off
Failure to close by the deadline is cited as MyerEmco walks away claiming it "has never been in a stronger position to move forward."
The merger of Harvey Electronics, Inc. and MyerEmco, first reported in the Spring, is off, according to a MyerEmco press release.
Lyndhurst, N.J.-based specialty consumer electronics dealer Harvey had agreed to acquire MyerEmco, a privately owned Mid-Atlantic hybrid retailer and custom installer, creating a chain of nine East Coast stores.
Harvey's acquisition of MyerEmco, which was supposed to close on August 10, has been terminated with MyerEmco citing Harvey's failure to close by the deadline.
MyerEmco's willingness to walk away from the deal, however, appears to also be fueled by opportunities that its executives recognize in the marketplace.
"MyerEmco AudioVideo has never been in a stronger position to move forward and grow than it is today," said president and COO Gary Yacoubian.
"Our unique custom installation/retail hybrid strategy has resonance in the DC market as never before, as the reality of digital convergence in the home manifests itself. Our ability to add value via our trained sales force and custom installation infrastructure has real resonance in an environment of declining average selling prices in the flat panel TV realm."
"We are going to be filing an 8-K [with the Security and Exchange Commission] shortly," Michael E. Recca, Harvey's interim chief executive officer, told CE Pro.
He declined to discuss the situation before that happens. An 8-K is a report that companies must file with the Security and Exchange Commission to announce major events for shareholders.
Lyndhurst, N.J.-based specialty consumer electronics dealer Harvey had agreed to acquire MyerEmco, a privately owned Mid-Atlantic hybrid retailer and custom installer, creating a chain of nine East Coast stores.
Harvey's acquisition of MyerEmco, which was supposed to close on August 10, has been terminated with MyerEmco citing Harvey's failure to close by the deadline.
MyerEmco's willingness to walk away from the deal, however, appears to also be fueled by opportunities that its executives recognize in the marketplace.
"MyerEmco AudioVideo has never been in a stronger position to move forward and grow than it is today," said president and COO Gary Yacoubian.
"Our unique custom installation/retail hybrid strategy has resonance in the DC market as never before, as the reality of digital convergence in the home manifests itself. Our ability to add value via our trained sales force and custom installation infrastructure has real resonance in an environment of declining average selling prices in the flat panel TV realm."
"We are going to be filing an 8-K [with the Security and Exchange Commission] shortly," Michael E. Recca, Harvey's interim chief executive officer, told CE Pro.
He declined to discuss the situation before that happens. An 8-K is a report that companies must file with the Security and Exchange Commission to announce major events for shareholders.
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Article Topics
News · Hybrid Dealers · Mergers and Acquisitions · Mergers And Acquisitions ·About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.
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*STALL OR FALL*
While in time, it is likely that the truth about this deal falling apart will come out…I would suspect that we will see other industry deals stall or fall as well.
The tightening credit market is causing funds to dry up on many of these announced…but not yet executed…deals—and not just the creatively financed ones.
A new dynamic is coming for our industry…and it will fuel a very interesting period of radical change.
Ted Green, President
The Stratecon Group, Inc.
http://www.stratecongroup.com