Strategy in TECH...
Moody’s Investors Service, one of the top credit rating agencies in the world, said this month that DEI Sales, Inc., dba Sound United, has been assigned a credit rating of B2 and a probability of default rating of B2-PD. In addition to this, they are assigning another B2 rating to Sound United’s proposed $380 million senior secured first lien term loan due in 2028. The forward looking “outlook” for Sound United and this rating is “stable.”
Sound United announced today that it has closed on its acquisition of Bowers & Wilkins (B&W), as expected. With this deal, B&W is rejoined with Classé – a high-end electronics manufacturer that itself was once part of B&W but then was acquired by Sound United back in Jaunuary 2018.
In yet another twist in the long and winding saga of Bowers & Wilkins (B&W), it was announced late Friday that the company has entered into an agreement to be acquired by Sound United, the parent company of several audio brands such as Denon, Marantz, Polk Audio, Definitive Technology, HEOS, Classé, and Boston Acoustics.
Telling me, “I’m just taking some time to do those things I’ve been wanting to do for a long time,” Sandy Gross, renowned² founder of three major speaker brands (Polk Audio, Definitive Technology, GoldenEar Technology), has stepped down as President Emeritus from his most recent one – GoldenEar. In a telephone interview this week, Gross shares with Strata-gee readers his reasons for making this announcement now, and reminisces on his nearly 50-year career building three popular speaker brands now in the homes of many thousands of consumers.
Sound United LLC, the parent company to brands such as Denon, Marantz, Polk Audio, Definitive Technology, Classé, and Boston Acoustics, announced on Tuesday that they have joined forces with Home Technology Specialists of America (HTSA), a leading trade consortium of custom integration dealers. This new partnership will expand availability of some of the top specialty audio brands throughout North America, thanks to HTSA’s extensive network of top dealers.
We seem to be in a week of big deals. First, we learned that SnapAV had acquired Control4, then we learned that the original founder of Paradigm has acquired back the Paradigm, Anthem, and Martin Logan brands from the private equity company that had bought the company from him some time back. Now we learn that Sound United, owner of Denon, Marantz, Polk Audio, Definitive Technology, HEOS, Classé, and Boston Acoustics has entered into an agreement with Onkyo Corp. to purchase Onkyo’s premier lineup of brands, including: Onkyo, Integra, Pioneer and Pioneer Elite.
Sound United announced yesterday it had completed the acquisition of shuttered high-end brand Classé Audio from former owner Bowers & Wilkins. Terms of the deal were not disclosed. The announcement confirms the deal of which Strata-gee reported last month when Sound United quietly entered negotiations to buy the brand.
Just when you thought it was all over, Strata-gee has learned that a new suitor – Vista, CA-based Sound United – has emerged to make a bid to acquire Classé Audio from current owner B&W Group. Classé was shut down by B&W on October 6th, as we reported at the time. However, because the company was still sitting on a relatively significant level of inventory – and was considering producing an additional small run of certain models to balance out their inventory to facilitate liquidation – B&W executives often maintained it was still in business.
When deals with three previously interested parties failed to come to fruition, B&W made the decision to close Classé’s Montreal headquarters, dismiss all Classé staff, and turned over service and support functions to B&W facilities.
GoldenEar Technology has launched newly updated versions of their popular Triton Two and Triton Three floor-standing speaker systems…now called the Triton Two+ and – you guessed it – the Triton Three+. The company has also introduced a new subwoofer called the SuperSub X.
We recently raved about the company’s first sub, the SuperSub XXL – and can’t wait to get an opportunity to hear this new little brother.
Walled Lake, Michigan-based sales representative company QMI, Inc. (The QMI Group) held a Casino night on Sunday, August 23rd for the sales staff of ABC Warehouse, a large electronics and appliance retailer in the Midwest. Sponsored by Pioneer and Polk Audio, the Casino night capped a 90-day sales promotion that allowed floor salespeople the opportunity celebrate their success, blow off some steam, and earn valuable prizes.
