Bose Corp. is set to acquire the McIntosh Group, granting the Massachusetts-based company control over one of the most renowned names in high-end audio.
According to Bose CEO Lila Snyder, McIntosh will continue to produce its signature high-end audio equipment from its established headquarters in New York. The acquisition also includes Sonus Faber, a brand known for crafting high-end speakers by hand in Italy.
This purchase allows Bose to enter the luxury audio market, Snyder explained in an interview with CNBC.
“There is this opportunity for luxury, where the consumer is more discerning, really interested in the heritage and the story, and that handcrafted nature,” she said.
Snyder, who became Bose CEO in 2020, did not disclose the terms or price of the deal. McIntosh was previously owned by Highlander Partners, a private equity firm based in Dallas.
McIntosh has been producing high-end amplifiers and other audio equipment since 1949, with some of its products priced in the tens of thousands of dollars. Meanwhile, Sonus Faber offers a pair of speakers costing $140,000.
The acquisition highlights how Bose is navigating a market with increasing competition in headphones and audio electronics. As a privately held company, Bose does not publicly disclose its annual revenue, but Forbes reported sales of around $3 billion in 2023. The company employs approximately 3,000 people.
Bose’s entry into the high-end luxury audio market comes at a time when the segment — defined as products priced over $5,000 — grew by 12% in 2023, reaching approximately $2.8 billion in sales, according to estimates from Futuresource Consulting. This acquisition allows Bose to explore a higher-end market for its already premium-priced products, such as its headphones, which can cost around $350 per pair.
“These are different customers that right now we’re not really reaching with our technology and with our products,” she said.
Snyder did not rule out the possibility of Bose producing McIntosh-branded headphones or other products.
“We do think there’s a real opportunity around wearables in the luxury and high-performance space as well, which is something that we would expect you to see from us down the road,” Synder said.
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Bose is widely recognized for its speakers and headphones, particularly its QuietComfort series, one of the first noise-canceling headsets introduced to the market in 2000. The company also offers soundbars, wireless earbuds, speakers, and car audio equipment. Last year, it divested a division responsible for creating sound systems for auditoriums and other professional settings.
The audio market has expanded since the time Bose was among the few high-end brands in the industry.
Today, Bose faces competition from major global companies, including Apple, which acquired Beats Electronics for $3 billion in 2014 and launched AirPods in 2016, targeting the premium headphone market.
Bose also faces increasing competition from newer audio-focused brands. Sonos, traditionally known for in-home speakers, launched its first noise-canceling headphones earlier this year, although it encountered challenges due to user backlash from an app redesign in May. Over the past decade, Bose has also contended with smart speakers from companies like Amazon and Google, often priced aggressively to drive market adoption.
The acquisition of the two luxury audio brands could bolster Bose’s presence in the automotive stereo market, which, according to Snyder, constitutes about a third of the company’s overall business. For instance, Sonus Faber supplies speakers for Lamborghini, while certain Jeep models feature McIntosh-branded audio systems. One promising opportunity for Bose is to integrate its noise-canceling technology into electric vehicles, making rides quieter, Snyder noted.
“There are places today where the Bose brand probably can’t go. Lamborghini is a great example of that,” Snyder said. “You really want the very best kind of cutting-edge technology to be in those luxury or highest-performing vehicles.”
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