Audio Research has been sold

Gregadd

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It was purchased by a hedge fund. Everything will remain the same, until changes of course. www.audioresearch.com News section
 

Gregadd

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News Announcement
After leading Audio Research for 38 years, founder and President William Z. Johnson is stepping back from his ownership role at the company in order to release himself from ongoing operations. He will continue with the company as Honorary Chairman and will contribute circuit designs for future products. On January 25, 2008 the purchase of Audio Research was concluded by Quadrivio SGR, a private-equity firm, with the participation of current Audio Research management.

All key personnel will remain with the company, with some realignment of responsibilities. Terry Dorn, a 22-year veteran with the company, will serve as President. Gerald Oxborough, 23 years with the company, will serve as Chief Financial Officer. Ralph Fetter, 16 years, continues as V.P. of Manufacturing. David Gordon, 14 years, will serve as Managing Director, Sales. And Ward Fiebiger, 25 years, will serve as Managing Director, Engineering and supervisor of product design.

The product line will remain unchanged, with the addition of new models. Nothing will change in the manufacturing process, all models will continue to be produced by hand in Audio Research's Minnesota facility. The company will continue to rely upon its carefully chosen network of talented and experienced independent retailers and independent importing distributors. The company's commitment to the highest quality music reproduction will live on. Audio Research will now have ready access to additional capital resources for product development and company infrastructure which will enhance our ability to provide superior products and services to our valued partners. Quadrivio SGR is a private-equity firm based in Italy. Quadrivio has already established itself as a progressive, quality-focused investor with holdings in a variety of industries, including manufacturing and high-end audio. Their current holdings include the prestigious Italian loudspeaker brand Sonus Faber. Audio Research and Sonus Faber will continue to operate independently with no overlap.

Our customers - distributors, retailers and consumers - will notice little difference in their dealings with Audio Research. Our commitment to High Definition® music reproduction, customer satisfaction and ongoing support for new and older products remains as firm as ever. This is an exciting moment for Audio Research, in which past and present achievements will have assurance of continuity in years ahead for music lovers world-wide. The future has been secured for a respected and treasured brand, with ownership that respects and believes in music reproduction enjoyed at the highest level.

We sincerely hope that you will join us as we explore the future of music reproduction together!

Sincerely,
 

Gregadd

WBF Founding Member
Apr 20, 2010
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WOW! I guess I need to stay more current. I'll have to renew my subscription to Stereophile. I just familiarized myself with the Krell situation.
Anything else I missed?
 
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DonH50

Member Sponsor & WBF Technical Expert
Jun 22, 2010
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Wow, I missed this too, thanks for posting. Bill Johnson is a legend; I hope arc continues strongly! - Don

p.s. I recently renewed my subscription, and now remember why I dropped it. I miss Audio...
 

Nicholas Bedworth

WBF Founding Member
May 7, 2010
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Maui, where else?
Basically hedge funds only make purchases to flip them ASAP afterwards. The hedge fund didn't buy it to keep it, that's for sure. The return on investment for a speciality audio company is probably pretty limited in current markets. Who's going to buy Audio Research and take out the investors?

Perhaps the Italians who put the bucks in, along with management (friends, family, fools, foreigners being the traditional sources of high-risk money :)) will try to form a conglomerate, along the lines of Harmon, who has Mark Levinson, JBL, Studer, etc. in their stable. http://www.harman.com/EN-US/OurProducts/Harmanbrands/Pages/AKG.aspx

Single companies like this aren't that valuable by themselves; instead, the fund will often buy up similar, complementary companies to form a "group" and get a lock on a certain market segment. They they make it profitable by eliminating redundant services, departments, etc., within the group. One only needs one accounting department, for example, which can service several entities.

Most managers with 25 years experience in one company are generally at least 50-55 years old, and looking forward to retirement. Perhaps Johnson got some cash out of the deal that helps his estate planning, etc.
 

American Audiophile

New Member
Aug 17, 2010
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If memory serves me correct ARC has been on the buying block for near 10 years or so. There were so many stipulations regarding its purchase, that many potential buyers backed off. I do understand why Bill wanted to protect his employees, contractors and to have ARC remain at its present location. But with that being said I have to agree with Nicholas in his general assessment of what will most likely happen. Hopefully ARC will not end up as a mere shell of itself, that has happen to other legendary marks in the business.
 

Gregadd

WBF Founding Member
Apr 20, 2010
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So far, So good.
 

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