New York, NY–Klipsch Audio has purchased the brand name and assets of privately held Danish speaker company Jamo A/S.
The Jamo assets will become a new wholly owned subsidiary of Klipsch Audio Inc. and will operate under the name of Jamo International Aps; both will operate as separate companies.
According to Klipsch’s spokesman, Joshua Ryan Hall, the goal of the purchase was to assemble one of the top audio brands in Europe and the number one speaker brand in the United States under a corporate management team that has achieved seven consecutive years of sales growth.
Moreover, as Klipsch asserted, the purchase expands the global reach of Klipsch Audio and improves the operational cost structure of both subsidiaries. Jamo is a a premier European speaker brand that also has significant distribution in Asia including 135 company-operated retail stores in China. Klipsch Audio Technologies is ranked number one in all U.S. speaker distribution channels maintaining a 13 percent market share, according to NPD Techworld, a point-of-sale market tracking firm.
“We acquired Jamo as part of our strategy to accelerate global growth with multiple brands,” added Fred Klipsch, chairman and CEO of Klipsch Audio Inc. “We will maximize our resources and buying power to benefit both Klipsch and Jamo. We are pleased to have such a quality, Danish brand as part of our family of products.”
“The stability of Klipsch supports the continued growth of the Jamo brand,” said Poul Henning Pedersen, interim managing director and director of product creation for Jamo International Aps. “Our partners will be pleased to learn that distribution stays the same and Jamo is a fully funded, independently operated company under the Klipsch Audio parent company.”
Prodution of Jamo’s critically lauded 2F concept of home theater solutions will not continue. “Jamo’s core competency is in designing and engineering affordable Danish-design speakers,” Hall added. “A narrowing of the company’s focus is necessary in order to strengthen core competencies and solidify its marketshare globally.”
Regarding product distribution, Hall noted, “We have a pretty strict idea of both Klipsch and Jamo existing as standalone profitable companies before we can consider any kind of collaboration. What we’re going to do through Klipsch management is grow that [Jamo] distribution by refocusing on what they do best. And they have an absolutely fantastic distribution network and obviously over 40 years they’re a respected brand.”
Klipsch made the acquisition announcement concurrent with other plans for major international expansion. In collaboration with VantagePoint Venture Partners, one of the worlds leading venture capital firms, Klipsch will expand its reach with its immediate entry into new markets.
As part of the relationship with VantagePoint, Klipsch named two new senior executives to the management team from VantagePoint portfolio company Aurora Inc. John Carter, former chief engineer of Bose Corp., has been named chief technology officer of Klipsch. Tom Jacoby, former CEO of Harman Consumer Group, joined Klipsch as chief development officer and vice chairman.