Music Group has announced its plan to acquire Denmark-based TC Group, bringing to an end two weeks of speculation and rumour which began in Frankfurt at Musikmesse/PL+S.
TC, which owns Tannoy, TC Electronic, TC-Helicon, Lab.gruppen, Lake, TC Applied Technologies and White Acoustics, was put up for sale in September 2014 (see TC Group on the market, confirms CEO).
Following an early announcement from Behringer this morning regarding the acquisition, TC Group has since posted a clarification: "A contract has been signed with Music Group, one of the largest group of companies in the professional audio industry. The final details are expected to be closed next week at which point the acquisition will be complete," says a statement on TC's website.
Music Group, owned by Uli Behringer, is home to iconic British pro-audio brands Midas, Turbosound and Klark Teknik and the eponymous "prosumer" Behringer line, among others.
The current TC Group was formed in 2002 when it acquired TGI plc, a holding company comprising Tannoy, Martin Audio, Lab.gruppen and Goodmans Loudspeakers Ltd (GLL). TC Electronic was founded by brothers Kim and John Rishøj in 1976 as a manufacturer of guitar effects pedals – the name is an anagram of 'Eccentric Lot'.
"The addition of Tannoy, Lab.gruppen and Lake allows Music Group to round out their professional install and touring sound offerings alongside Midas, Klark Teknik and Turbosound, while TC Electronicand TC-Helicon represent the industry’s leading brands in the guitar effects and voice processing sector and perfectly complement Music Group’s Bugera guitar tube amplifier brand and highly successful Behringer prosumer division," said a statement early this morning from the Manila-based holding company. There is no mention of the White Acoustics brand.
Founder Uli Behringer commented further: “Music Group stands for relentless focus on innovation, business transformation and overall IP creation. Since the acquisition of Midas, Klark Teknik and Turbosound, we have been continuously pursuing brands that complement the mixing console, processing and loudspeaker excellence offered by these historic brands. Throughout our search, TC Group has clearly stood out as the ideal match because of their world-class brands, impressive intellectual property, sterling reputation and first-class team of people. I am very proud to welcome the TC Group team into our family.”
Uli Behringer continued, “We will invest heavily in positioning TC Group’s brands at the very pinnacle of the industry, as we have done with Midas, Klark Teknik and Turbosound, where we have invested over $100 million in highly automated and integrated manufacturing facilities, quality control systems and engineering resources, including a new Centre of Engineering Excellence in Manchester, UK. TC Group will now equally have full access to Music Group’s extensive resources and advanced automated system platforms in such areas as product development and lifecycle management, engineering, manufacturing, supply chain and finance.”
TC Group’s CEO Anders Fauerskov responded, “We are very honoured that during the acquisition process, some of the largest industry players were bidding for TC Group; however we have selected Music Group as they represent the perfect fit in terms of strategic direction, overall synergies and company culture." He added that his team were "thrilled" to join Music Group and "excited to enter a new era of unprecedented innovation and growth”.
German businessman and musician Behringer began his ambitious expansion plans in December 2009 when he bought Midas Klark Teknik, comprising console-maker Midas and signal-processing specialist Klark Teknik (see Will everything Behringer touches turn to gold?) and consequently formed the parent Music Group company. He announced the acquisition of loudspeaker manufacturer Turbosound at InfoComm 2012 (see InfoComm double for Music Group: Turbo bought, Midas PRO 1 revealed).
During the Frankfurt show, Music Group is believed to have ended relationships with a significant number of distribution partners worldwide, as part of ongoing changes to its distribution strategy.