Garmin® Signs Letters of Intent to Acquire Distributors in Austria and Portugal
Garmin Ltd. (NASDAQ: GRMN) announced today that it has signed letters of intent for the proposed acquisition of Puls Elektronik GmbH (“Puls Elektronik”), the distributor of Garmin’s consumer products in Austria and Satsignal Equipamentos de Comunicações e de Navegação S.A. (“Satsignal”), the distributor of Garmin’s consumer products in Portugal. The completion of each of these acquisitions is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions. The acquisitions are expected to be completed by August 2008.
Dr. Min Kao, chairman and CEO of Garmin Ltd., said “These proposed acquisitions are a continuation of our successful strategy of enhancing our ability to support key retailers and OEMs in European markets. We have to date acquired our distributors in five European countries. These acquisitions have enabled us to increase our European market share and further solidify our position as the global leader in satellite navigation. The proposed acquisitions of Puls Elektronik and Satsignal, together with the previously announced, pending acquisitions of our distributors in Belgium and Finland, will further strengthen Garmin’s distribution in European markets.”
Dr. Hartwig Strobl, managing director of Puls Elektronik, said "We are very proud of our achievements in building the Garmin brand into a leading position in Austria. We are confident that full integration of our company into the Garmin family will enable us to achieve benefits for our customers and additional sales growth.”
Carlos Martins, managing director of Satsignal, said “As the distributor in Portugal of Garmin’s automotive/mobile, marine and outdoor/fitness products since 2002, we at SatSignal are also proud of our achievements in building the Garmin brand in Portugal. We expect to be able to achieve additional efficiencies and capture more opportunities through full integration into Garmin.”
Financial terms of the proposed transactions were not released. Following the acquisition, Puls Elektronik is expected to change its name to Garmin Austria GmbH. and Satsignal is expected to change its name to Garmin Portugal S.A. Puls Elektronik and Satsignal will each retain their management, sales, marketing and supporting staff, consisting of 30 people and 15 people respectively, and will continue operations at their current headquarters located respectively in Graz, Austria and Lisbon, Portugal.
The global leader in satellite navigation, Garmin Ltd. and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 – most of which are enabled by GPS technology. Garmin’s products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin is a registered trademark of Garmin Ltd.
Notice on forward-looking statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 29, 2007 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s Form 10-K can be downloaded at www.garmin.com/aboutGarmin/invRelations/finReports.html. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.