Denon/Marantz/B&W: Masimo sells audio division to Harman

Earlier this year, Masimo "ceased operations" (from an accounting perspective) of its consumer division Sound United with brands such as Denon, Marantz and Bowers & Wilkins, and now the company has agreed to sell the division to Harman International for 350 million US dollars in cash. This is according to a press release from Masimo. Harman itself has been a subsidiary of Samsung Electronics since 2017. Subject to the necessary regulatory approvals, the transaction is expected to be completed by the end of 2025.

Sound United's audio brands will be added to Harman's existing product portfolio, which already includes the JBL and Harman Kardon brands. Dave Rogers, President of Harman's Lifestyle division, is quoted as saying that the transaction will enhance the company's value proposition and expand its product offering across multiple audio categories.

It will also be interesting to see whether Harman sets up new sales structures for this purpose. Masimo recently concentrated all activities in the new office in Eindhoven (Netherlands) and closed offices in France, Finland, Switzerland and Germany. Roland Krüger, the manager of the Electronics product line for Denon, Marantz and Classé Audio worldwide, left Masimo on December 31.

Turbulent times

In the highly competitive hi-fi market, the brands belonging to Sound United, such as Denon, Marantz and Bowers & Wilkens, long seemed like a rock in the surf. In November 2024, however, there were increasing media reports that Sound United's parent company Masimo was considering discontinuing the – division, which also includes HEOS, Boston Acoustics, Polk Audio and Definitive Technology – at the beginning of 2025.

The presentation of the financial report for the third quarter of 2024 at the beginning of the month caused initial unrest. In it, Masimo reported a net loss of USD 12.9 million for the past three months and USD 31.3 million since the beginning of 2024. In the first nine months of 2023, the net loss was still USD 21.2 million. The result is in stark contrast to the consistently positive figures in the medical technology segment.

The Denon and Marantz brands have already had a turbulent journey: at the beginning of 2017, the US company Sound United, parent company of Polk Audio, Definitive Technology and Polk Boom, announced the sale of its Denon, HEOS by Denon, Marantz and Boston Acoustics brands. At the end of 2020, the company then announced the completion of the acquisition of Bowers & Wilkins (B&W).

This was followed in early 2022 by the surprising news that Sound United would be acquired – by the Californian company Masimo Corporation. The move came as a great surprise, as there were apparently no points of contact between the medical technology company and the hi-fi company. (nij)