Yamaha reaches next stage in NEXO buyout12 August 2008
FRANCE/JAPAN: Yamaha Corporation has now achieved a majority stake in NEXO, writes David Davies. The intention by Yamaha to acquire French loudspeaker company NEXO was originally announced on June 19th, with Yamaha subsequently completing the purchase of all shares owned by NEXO founders Eric Vincenot and Michael Johnson on the final day of July. Yamaha Corporation’s Keisuke Kobayashi has now been appointed to the role of NEXO chairman and CEO, while Vincenot and Johnson will remain on the board of directors.
According to the official release confirming the share acquisition, a total of 694,709 shares – at a price of Euro 51.542 per share – are now under Yamaha ownership.
Yamaha is now scheduled to launch a tender offer for the remaining shares of NEXO on the open market in September, with the objective of acquiring 100% of company shares. Beyond that, Yamaha’s schedule calls for the tender offer to be completed in October, with an application to delist set for the same month.
The appointment of Kobayashi – a former Yamaha head of commercial audio – was confirmed at an extraordinary meeting held following the acquisition of the founders’ shares.
Several days before the share purchase was confirmed on August 4th, Yamaha Corporation published its first quarter results for the current year. Consolidated net sales stood at _123.3 billion – down 8.8% on the same period in the previous fiscal year. The disposal of certain businesses in the electronic equipment, metal product and recreation segments, and foreign currency factors were among the reasons cited for the reduction.
Founded by Vincenot and Johnson in 1979, NEXO’s current products include the compact two-way GEO S1210 loudspeaker module (pictured), the S1230 two-way enclosure and the RS15 sub.