Bang & Olufsen divests its Czech subsidiary, Bang & Olufsen s.r.o, to Tymphany Acoustic Technology
Struer, 2017-03-13 08:05 CET (GLOBE NEWSWIRE) -- Company Announcement no. 16.16
Bang & Olufsen a/s (“Bang & Olufsen”) has entered into a share purchase agreement with its long term partner Tymphany Acoustic Technology HK Limited ("Tymphany") for the sale of all the shares in Bang & Olufsen’s Czech assembly subsidiary, Bang & Olufsen s.r.o. (the "Transaction"). The divesture of the assembly facility expands Bang & Olufsen and Tymphany’s successful partnership model and supports Bang & Olufsen’s strategy to focus on the core capabilities with an agile and asset light footprint.
The cash flow impact to Bang & Olufsen is DKK 123 million and the accounting gain is expected to be DKK 33 million.
As part of the Transaction, Tymphany will produce Bang & Olufsen products in the Czech factory as a trusted and selected supplier to Bang & Olufsen, and the entering into a long term purchase agreement as part of the Transaction will ensure stability in the future supply of high quality products to Bang & Olufsen, and the Transaction will thereby not impact the operating performance of Bang & Olufsen. The Transaction will enable Bang & Olufsen to further strengthen its areas of core competencies within acoustics, design, interaction and quality.
All of Bang & Olufsen's Czech employees will be transferred to Tymphany at the time of closing in order to ensure the delivery of unique innovation, visual design and craftsmanship which Bang & Olufsen is known for.
The closing of the Transaction remains subject to certain closing conditions, including the approval from the landlord of the Czech factory to the assignment of the lease from Bang & Olufsen to Tymphany, the approval from the Czech competition authorities and the non-occurrence of a material adverse change to the financial position of Bang & Olufsen s.r.o. prior to closing. Closing is expected to be completed within the next months.
Ole Andersen Henrik Clausen
Chairman of the Board CEO
For further information, please contact;
Investor Relations, Claus Højmark Jensen +45 2325 1067
Press, Morten Juhl Madsen +45 4030 8986
Tymphany designs and manufactures some of the most innovative consumer and professional audio systems on the market. The company also sells a full line of speaker drivers under the Peerless by Tymphany brand. The company’s roots go back to 1926 when Peerless was founded in Denmark. In the proceeding 90+ years, Tymphany has grown to be a premier audio ODM with over 4,200 employees. For more information visit http://www.tymphany.com
About Bang & Olufsen
Bang & Olufsen (www.bang-olufsen.com) was founded in Struer, Denmark, in 1925 by Peter Bang and Svend Olufsen, two innovative, young engineers devoted to high quality audio reproduction. Since then, the brand has become an icon of performance and design excellence through its long-standing craftsmanship tradition and the strongest possible commitment to high-tech research and development.