Go-Video buys Cal. Audio

Television Digest with Consumer Electronics, Jan 5, 1998

GV paid CAL-Thailand $775,000 and assumed $1 million in debt to acquire Blue Lake, Cal., company that has carved niche in specialty retail chains with high-end DVD and CD players as well as D/A converters. CAL, which employs 14 and has annual sales of more than $3 million, will operate as GV subsidiary and continue to assemble products in Cal.

Purchase, expected to close in late Jan., also includes Cal. Audio's Cinevision video projectors. Separate factory in Thailand currently isn't part of deal, GV corp. Development Vp Edward Brachocki said.

CAL acquisition, GV's first since buying security products company Dublin Industries in 1995 (TVD Feb 27/95 p17), comes as company prepares to launch high-end Loewe digital TVs in 2nd half of 1998. CAL engineers will work on design of products and may offer separate audio components for line, Brachocki said. Loewe line is expected to consist of 36[inches] direct-view set at start, and GV is near agreement for assembly of product.

Although CAL purchase could lead to GV audio products, brands will keep separate channels of distribution. GV has targeted wide distribution for its dual-deck VCRs with Sam's Club, Costco and Circuit City among its biggest customers. CAL has found home in dealers specializing in selling step-up products, including 5-disc CD changers at $1,995 and DVD players at $2,500. Company also has worked on products with Matsushita, sources said.

"We will use their product development talent to create products that are appropriate for different channels of distribution," Brachocki said. "As far as home theater goes, it's a perfect match because this gives us a very strong start in the digital products." CAL Pres.-Chief Engineer Dan Donnelly said company will "benefit tremendously" from having "larger owner intimately familiar" with U.S. market.