- by Jacob Coakley
In one of the biggest (and most surprising) manufacturing news stories of the year, the Harman group—the umbrella organization for such iconic audio manufacturers as Soundcraft, Crown, JBL and more—has bought Martin Professional, the lighting manufacturer. The deal is worth 110 million euros and is expected to close early in 2013. Both Harman and Martin cite the increased opportunities available to them both thanks to the integrated solutions available by offering both audio and lighting in one company as a reason for the move.
HARMAN Signs Agreement to Acquire Entertainment Lighting Company Martin Professional
STAMFORD, Conn.--(BUSINESS WIRE)--HARMAN, the global premium audio and infotainment group (NYSE:HAR), said today that it has reached an agreement to acquire Martin Professional A/S of Denmark, a world leading provider of lighting solutions for the entertainment, architectural, and commercial sectors, for EUR 110 million. The deal is subject to regulatory approvals and customary closing conditions, and is expected to close early in 2013.
“Our intelligent lighting solutions for touring, events, theatre and installations are a natural and perfect complement to Harman’s pro audio business. Our customers expect increasingly advanced and integrated solutions and HARMAN’s rich portfolio of technologies will enable us to drive new business opportunities.”
“We look forward to welcoming the talented employees and dynamic innovations of Martin Professional to the HARMAN organization,” said Dinesh C. Paliwal, Chairman, President and CEO. “This acquisition will be an excellent complement to our professional business serving all our global markets including the fast-growing BRIC nations. With the acquisition of Martin Professional, our strategy to provide system solutions to our customers will be further enhanced as we will be able to offer a full audio and lighting electronics solution for the live stage and events as well as permanent avenues and installations. We look forward to unlocking this new business potential.”
“We are excited at the prospect of a strong integrated solution incorporating Martin Professional’s products with HARMAN’s professional audio brands and technologies,” said Martin President Christian Engsted. “Our intelligent lighting solutions for touring, events, theatre and installations are a natural and perfect complement to Harman’s pro audio business. Our customers expect increasingly advanced and integrated solutions and HARMAN’s rich portfolio of technologies will enable us to drive new business opportunities.”
Founded in 1987 and headquartered in Aarhus, Denmark, Martin Professional is a world leader in the creation of dynamic lighting solutions for the entertainment, architectural, and commercial sectors. Martin lighting solutions are industry standard on top tours and events, grace prestigious theatres, energize nightclubs, and decorate major television studios around the globe. Recent Martin lighting installations include concerts by Lady Gaga, Lenny Kravitz, and Linkin Park; special events such as the Olympics and Commonwealth Games; venues such as Wembley Arena in London; television productions such as X Factor and the MTV Music Awards, as well as numerous cinema, retail and infrastructure facilities.
Martin Professional is a wholly owned subsidiary of Aktieselskabet Schouw & Co., a holding company traded on the Nasdaq Copenhagen Stock Exchange. Martin reported revenues of approximately US$150 million in fiscal 2011 and employs over 450 people across its operations, including state-of-the-art manufacturing facilities in Denmark and the United Kingdom. Martin operates the specialty lighting industry’s most complete and capable distributor network with local partners in nearly 100 countries.
HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets — supported by 15 leading brands, including AKG, Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 13,900 people across the Americas, Europe and Asia, and reported net sales of $4.4 billion for the year ended June 30, 2012. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.
HARMAN International Industries, Incorporated acquires Martin Professional A/S
We are pleased to inform you that Schouw & Co., parent company of Martin Professional, has entered into an agreement with the global infotainment and audio company HARMAN International Industries to sell Martin to HARMAN. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in Q1 2013.
Through this new combination of two worldwide industry leaders, HARMAN and Martin are convinced that their comprehensive offering of audio, lighting and video solutions for the live stage and events, as well as permanent venues and installations, will provide new, exciting opportunities and will take customer satisfaction to even higher levels.
This transaction will create a One-Stop-Shop for the professional entertainment market. Adding Martin to HARMAN’s USD $4.4 billion organization and combining two of the largest R&D budgets in the audio and entertainment lighting industry will enable the companies to grow and improve the lighting and video product offering to the benefit of all existing and new customers.
The companies are confident that not only will they cement their respective positions in their industries, but will additionally and not least make their customers more successful by providing new, innovative and improved products, services and solutions in the future.
Blake Augsburger, Executive Vice President and President of the HARMAN Professional Division, is looking forward to welcoming Martin to HARMAN and states: “Martin product lines are an excellent complement to our professional audio business. After the transaction closes, we will be able to offer a full line-up of audio, lighting and video solutions for the live stage as well as permanent venues and installations.”
Christian Engsted, CEO of Martin Professional commented: “We very much look forward to exploring the mutual benefits this change in ownership offers and continuing to develop our business relationship with our customers and partners across the globe.”
Martin Professional will continue as an independent business unit within the HARMAN Professional Division, with the existing points of contact.
Founded in 1987 and headquartered in Aarhus, Denmark, Martin Professional is a world leader in the creation of dynamic lighting solutions for the entertainment, architectural, and commercial sectors. Martin also offers a range of advanced lighting controllers and media servers, as well as a complete line of smoke machines as a complement to intelligent lighting. The company operates the industry’s most complete and capable distributor network with local partners in nearly 100 countries. For more information please visit www.martin.com
For more information please refer to the official press release from Harman on www.harman.com