Published on April 1st, 2015 | by The GC Team
Harman acquires B&O Automotive car audio business
Harman International Industries has signed an agreement to acquire the Bang & Olufsen Automotive car audio business for €145,000,000 plus license payments for an exclusive license to the Bang & Olufsen and B&O PLAY brands within the automotive industry.
Under the terms of the agreement, Harman will assume all B&O Automotive customer programmes, and all Automotive development and production resources will be transferred to the Connecticut headquartered firm. The agreement remains subject to certain customary closing conditions, including regulatory approvals.
Bang & Olufsen sound systems are available in a wide range of Audi, Aston Martin, BMW and Mercedes-Benz car models.
Dinesh C. Paliwal, Harman Chairman, President and CEO, said: “Bang & Olufsen is a distinctive brand that will complement our existing premium branded offerings and strengthen Harman’s position in this segment. While Bang & Olufsen branded solutions will continue at the top of the high-end luxury segment, we will rapidly grow B&O PLAY branded solutions in the larger mass luxury market.
“From the marketing, scale and technologies Harman will bring to the business, we will strengthen and grow the Bang & Olufsen and B&O PLAY automotive audio brands and, importantly, further improve profitability, which is now in line with our existing car audio business,” added Paliwal. “We are excited to realise the many synergies and opportunities inherent in this new relationship.”
The Bang & Olufsen and the B&O PLAY brands will join Harman’s portfolio of car audio brands including Bowers & Wilkins®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson® and Revel®.