BOSE exhibit at Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska.
David A. Grogan | CNBC
Bose Inc. plans to acquire the McIntosh Group, giving the Massachusetts-based company control of one of the most prominent companies in high-end audio.
Bose CEO Lila Snyder said McIntosh will continue manufacturing the high-end audio equipment it is known for at its longtime headquarters in Binghamton, New York. The deal also includes Sonus Faber, a company that handcrafts high-end speakers in Italy.
Snyder said in an interview with CNBC that the acquisition of the two audio workshops will give Bose access to the high-end premium audio market.
“There is this opportunity in luxury where consumers are becoming more discerning and really interested in heritage and stories and the handmade nature,” she said.
Snyder, who became Bose’s CEO in 2020, did not disclose the terms or amount of the acquisition. McIntosh was previously owned by Highlander Partners, a Dallas-based private equity firm.
McIntosh has been making high-end amplifiers and other audio equipment since 1949, and one of its devices can cost tens of thousands of dollars. Sonus Faber sells speakers for $140,000.
The acquisition shows how Bose is navigating an ever more competitive environment in headphones and audio electronics. Bose, which is privately held and does not share annual revenue, had sales of about $3 billion in 2023, according to Forbes. The company has approximately 3,000 employees.
Bose enters high-end luxury audio market
Futuresource Consulting estimates that total sales of premium audio (defined as products costing $5,000 or more) grew 12% in 2023 to approximately $2.8 billion. The deal allows Bose to test the high-end market for its already expensive products, with Bose headphones costing as little as $350.
“These are different customers that we’re not really reaching with our technology and products right now,” she said.
Snyder did not rule out the possibility of Bose producing Macintosh-branded headphones or other products.
“We think there’s a real opportunity around wearables in the premium and high-performance space as well. That’s what you can expect from us in the future,” Synder said.
Bose is best known for its speakers and headphones, including its QuietComfort headphone series, which was one of the first noise-cancelling headsets to hit the market in 2000. We also sell soundbars, wireless earbuds, speakers, and car audio equipment. Last year, the company sold a group that builds sound systems for auditoriums and other professional environments.
The audio market has grown since Bose became one of the few high-end brands.
Bose currently competes with some of the world’s largest companies, including: appleacquired Beats Electronics in 2014 for $3 billion and launched AirPods in 2016, targeting the premium headphone market.
Bose also has new audio-focused competition.
Sonos, best known for its home speakers, introduced its first noise-cancelling headphones earlier this year, but the company redesigned its app in May, reeling from poor reception from users. are. Bose has also spent the past decade competing with smart speakers such as: Amazon and google Prices were often significantly lower to encourage adoption.
The acquisition of the two high-end audio workshops could help Bose grow in the car stereo market, which accounts for about a third of its business, Snyder said. For example, Sonus Faber makes speakers for Lamborghini cars, and some Jeeps have McIntosh-branded audio systems. One possibility Bose hopes to see, she said, is that its noise-cancelling technology could be integrated into electric cars to make them run quieter.
“There are places today that the Bose brand probably can’t go. Lamborghini is a great example of that,” Snyder said. “We really want luxury cars and top-performance cars to have the best, most cutting-edge technology.”
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