Bang & Olufsen sells off US auto activities in billion kroner deal - The Post

Bang & Olufsen sells off US auto activities in billion kroner deal

Owners say sale is part of core business strategy

Harman is taking over B&O’s sound systems for the auto industry in the US (photo: B&O)
March 31st, 2015 3:30 pm| by Christian W

The Danish high-end stereo and TV producer Bang & Olufsen (B&O) has revealed it has sold its activities in the US auto industry to the US speaker producer Harman.

In a deal worth a reported 1.2 billion kroner – including a 20-year licencing agreement – B&O’s automotive customer programs and all its development and production resources will also be transferred to Harman.

“In just 10 years, we have built Bang & Olufsen Automotive based on Bang & Olufsen’s exclusive brand and unique capabilities within acoustics, design and craftsmanship,” Tue Mantoni, the CEO of B&O, said.

“Harman’s position as the market leader in car audio and infotainment solutions combined with the strengths of the Bang & Olufsen brands will create significant benefits for automotive customers, as well as for both companies,”

READ MORE: Bang & Olufsen continues to lose money

Core business focus
B&O – which was founded 90 years ago in 1925 – said the sale was part of a strategy to focus the core business on the two brands Bang & Olufsen and B & O Play, which target consumers at the retail level.

The sale means that all employees in B&O’s automotive business unit will be transferred to Harman.

The Harman Group enjoyed a turnover of about 36.5 billion kroner in 2014.