TC Group on the market, confirms CEO29 September 2014
TC Group, the international collection of sound and audio technology brands, has quietly gone up for sale. Speaking in response to various reports surfacing around the internet, CEO Anders Fauerskov confirmed to PSNEurope: “It is correct that we have put all of the shares of TC Group up for sale.”
Danish financial newspaper Børsen estimates TC Group in total could command a price as high as one billion krone (roughly £150m or €134m). The company, headquartered in Risskov, Denmark, owns a variety of brands around the world, including Tannoy, TC Electronic, TC Helicon, Lab.gruppen, Lake, TC Applied Technologies and White Acoustics.
Fauerskov says that much of the impetus for the sale came from a desire to expand the company’s reach, referring to “… a recent analysis we did, showing that we can grow the company even faster and to an even stronger position, with a different, and financially stronger, ownership”. Those findings dovetailed with some financial intents as well, as he noted that “some shareholders have declared their interest in selling”.
The announcement that TC Group is for sale casts a different light on the company’s recent history, most notably a major restructuring in 2010 and a new collective branding initiative in 2013. While the various TC Group companies had been linked by the same parent organisation for years, the 2010 restructuring specifically created the umbrella parent company TC Group International, initiating a new sales and support structure based on vertical markets across all TCGI-owned brands that used the creation of TC Group Americas in 2009 as a business model. More recently, the 2013 branding effort aimed to bring the various companies under a new and more visible TC Group brand identity, aligning the varied companies together and enabling more synergies between them.
Fauerskov indicated that the move to put TC Group on the market was not a casual decision or a “toe in the water” exercise. “We do not intend this process to go on for a prolonged time period,” he says. “The process is being handled by an M&A firm we have retained, and we expect that a sale will complete some time in the spring.”