Klipsch to Expand and Relocate to Accommodate Rapid Growth; Indiana Department of Commerce and the City of Indianapolis Offered Incentives Worth a Total of $1.4 million
SUMMARY: Indianapolis-based premium loudspeaker manufacturer Klipsch, LLC has changed its name to Klipsch Audio Technologies. The company's new state-of-the-art worldwide headquarters could be complete before the end of the year.
INDIANAPOLIS (August 23, 2000) - With a new name and a new worldwide headquarters, Klipsch is setting the stage to hold on to its position as the number one specialty audio loudspeaker brand in the United States.
According to Chairman and Owner Fred Klipsch, the 55-year-old "Legend in Sound" company has doubled its sales in the last three years through stellar core business performance, along with major contributions from other business units including professional cinema, international operations and multimedia audio.
Klipsch, which employs about 55 people at its current Indianapolis facility, will move its worldwide headquarters to 3502 Woodview Trace in College Park on the city's northwest side. The expansion involves a capital investment of approximately $12.8 million and the creation of 132 new, high-wage jobs over three years. The Indiana Department of Commerce and the City of Indianapolis offered Klipsch incentives worth a total of $1.4 million. Commerce awarded Klipsch a Training 2000 grant of $125,000 and EDGE (Economic Development for a Growing Economy) tax credits worth up to $1 million. The city offered Klipsch five-year tax abatement on personal property valued at $62,000, and six-year abatement on real property worth $251,000.
"The audio industry, particularly consumer electronics, is a volatile business. It's just as unpredictable and fraught with change today as it was 10 years ago," Fred Klipsch said. "Fortunately, our 'best of class' product development strategy and careful brand navigation have earned us enviable positions of leadership in numerous industry categories. We are now making significant organizational and infrastructure improvements that will allow us to maintain and grow this market position."
Audio pioneer Paul W. Klipsch founded the company in 1946 under the name Klipsch & Associates. The name was changed to Klipsch, Inc. in 1989 when Fred Klipsch and his wife Judy Klipsch purchased the company, which was later reorganized and changed to Klipsch, LLC. Effective June 2000, the new public name -Klipsch Audio Technologies - was officially adopted.
"We have evolved far beyond manufacturing alone. Today, Klipsch is a technology company whose core business is designing and marketing premium loudspeaker systems," Fred Klipsch said. "We're focused on developing and utilizing new proprietary technologies that deliver the Klipsch sound experience. Our new name - Klipsch Audio Technologies - better reflects our true market position as well as who we are and where we're going as a company."
According to Mike Klipsch, executive vice president and COO for the Klipsch Worldwide Manufacturing and Supply Management Group, Klipsch will occupy 65,000 square feet of the existing 100,000 square foot, four-story building, which is more than three times the size of current 18,000 square foot corporate offices located on the northeast side of Indianapolis. Mike Klipsch said the additional 35,000 square feet of the new Klipsch worldwide headquarters building will be leased to another company or companies. Closing on the purchase of the building is scheduled for September 30, which could allow Klipsch and any tenants to move into the building as soon as late 2000 or early 2001.