Avalon Park Group Holding AG and Avalon Park International LLC Enter into Stock Purchase Agreement with Gentex Corporation
Beat Kahli, President of VOXX International Corporation (VOXX) and Controlling Partner of Avalon Park Entities Agrees to Sell 50% of APG Holdings in VOXX
Gentex to Own ~15.1% of VOXX's Class A Common Stock Following the Transactions
ORLANDO, Fla., Oct. 10, 2023 /PRNewswire/ -- Avalon Park Group ("APG"), a diversified family of companies across multiple industries and geographies, is pleased to announce today that it has entered into Stock Purchase Agreement with Gentex Corporation (NASDAQ: GNTX) to sell 50% of its total ownership stake in VOXX International Corporation (NASDAQ: VOXX).
Beat Kahli, CEO and President of APG has been a shareholder of VOXX for several years, continuing to build his position was named President of VOXX in February 2023. In taking on this executive role with VOXX, one of his primary focus areas was building strategic partnerships, and currently, VOXX and Gentex are collaborating in both the Automotive and Biometrics industries. Mr. Kahli has agreed to sell half of APG's stake in two separate tranches, the first of which took place on Friday, October 6th and the second planned for January 5, 2024.
The Stock Purchase Agreement was signed on October 5, 2023 between Avalon Park International LLC and Avalon Park Group Holding AG, as Sellers, and Gentex Corporation, as the Purchaser. The first tranche of 1.57 million shares closed on Friday, October 6, 2023 at $10 per share, representing a 32.5% premium to VOXX's current share price as of market close on October 5, 2023. The second tranche of 1.57 million shares is scheduled to close on January 5, 202 and the stock price will be based on a formula in the Stock Purchase Agreement at (a) a 25% premium if the volume weighted average price (VWAP) for the 20 days prior to the closing is between $7 and $8; or (b) if the 20 day VWAP is at least $8.00 but less than $10, the purchase price will be $10 per share; or (c) if the 20 day VWAP is greater than $10, the purchase price will be the market price.
As noted in its Form 4 filing with the Securities and Exchange Commission on August 21, 2023, Gentex Corporation previously owned 173,808 shares of VOXX International's Class A Common Stock. With this most recent transaction and the one planned for January 2024, Gentex will own approximately 15.1% of the Company's total Class A Common Stock Outstanding, becoming one of the Company's largest shareholders, along with the Company's Founder and Chairman, John Shalam and the two Avalon Park entities.
Commenting on the transaction, Mr. Kahli stated, "When I came on as President of VOXX, a key focus was building the right strategic partnerships that would help us grow and create value. With Gentex, I believe we found that partner both from business and financial perspectives. Gentex is one of our key partners in Biometrics and we've worked closely with them on the Automotive side of our business as well. With Steve Downing, President and CEO of Gentex joining our Board this year, we strengthened our relationship further and there are still many areas we see for greater collaboration. My decision to sell a portion of my holdings has nothing to do with my belief in VOXX, but rather, was about creating value for VOXX and all shareholders. We now have three holders representing more than half of our common stock outstanding who are fully aligned in strategy and what it will take to realize our vision."
About Avalon Park Group Holding AG
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SOURCE Avalon Park Group