THIEL Aquired By Private Equity Firm

[admin]

In what seems like a growing trend among A/V manufacturers, THIEL is being acquired by a private equity firm. The firm intends to expand THIEL's engineering department and keep most existing employees in place. They will push to improve product development and marketing processes and expand product lineup. THIEL will continue to produce high-end products, but also focus on distributed audio and architectural speakers.

Discuss "THIEL Aquired By Private Equity Firm" here. Read the article.

 

[ridikas]

In all honesty, Thiel has run it's course. They haven't made anything good in close to a decade. Time to close shop and move on...

 

[dkane360]

In all honesty, Thiel has run it's course. They haven't made anything good in close to a decade. Time to close shop and move on...

Right, because a slump is a reason to shut down a business.

 

[shadyJ]

Why does this private equity business have to remain anonymous? That, to me, is not a good sign.

 

[cschang]

Why does this private equity business have to remain anonymous? That, to me, is not a good sign.

That definitely makes you wonder.

 

[gene]

Why does this private equity business have to remain anonymous? That, to me, is not a good sign.

I was wondering the same thing. Very odd.

 

[gmichael]

Something similar happened to Altec Lancing a couple years back. A year later their HQ was moved from PA to CA. I go by their old HQ twice a day. It's sad to see the parking lot so empty.

 

[mtrycrafts]

Why does this private equity business have to remain anonymous? That, to me, is not a good sign.

Mitt's firm?

 

[Churlish1]

Something similar happened to Altec Lancing a couple years back. A year later their HQ was moved from PA to CA. I go by their old HQ twice a day. It's sad to see the parking lot so empty.

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It is sad.
That seems to be what happens when private equity firms take over.

I've been with 2 different companies who had been purchased and the end result is that the intellectual properties are sold off, facilities closed, profit taking is done and employees are left out to dry.
Sometimes it's a quick death and sometimes it seems to linger forever as the new management strives to eek out every profit margin possible to the detriment of the Brand.

Kohlberg Kravis Roberts (KKR) bought one of the firms I worked at and they simply dismembered the 5 divisions over a period of 6 years.
Management told us not to worry, we were good, yada yada so on and on.

In all honesty, sometimes the best thing that comes out of it is the true talent from the organization moves out into the market and we get a new innovative company ala' Totem or Tekton…there seems to be so many of these smaller firms emerging that are simply very talented individuals who won't be denied. There is something to say about these types of smaller, more market responsive boutiques, populated by entrepreneurs who strike out on their own.

carpe diem to them

 

[SnowmaNick]

Right, because a slump is a reason to shut down a business.

It does if that means the price for the goods has dropped below the average variable costs to produce them.

I don't think that was the reason with Thiel though. They have several very good products in their stable currently.

The best path forward that I see for Thiel is the PE firm getting it prettied up for sale to another conglomerate (maybe Fine Sounds wants another speaker brand).

As for running a firm, well, that is not what PE's do. So, if I were working for Thiel, I'd be a more than a little concerned right now.

 

[monkish54]

Mitt's firm?

Actually, he has a few AV companies.

Boston, Marantz, and Denon (to name a few) are owned by Bain Capital.

McIntosh used to be under Bain's wing as well.

http://www.baincapitalprivateequity.com/investments/denon-marantz

 

[cpp]

Actually, he has a few AV companies.

Boston, Marantz, and Denon (to name a few) are owned by Bain Capital.

McIntosh used to be under Bain's wing as well.

Investments | Bain Capital Private Equity

Heck Bain owns a lot of stuff

The firm was founded in 1984 by partners from the consulting firm Bain & Company. Since inception it has invested in or acquired hundreds of companies including AMC Entertainment, Aspen Education Group, Brookstone, Burger King, Burlington Coat Factory, Clear Channel Communications, Domino's Pizza, DoubleClick, Dunkin' Donuts, D&M Holdings, Guitar Center, Hospital Corporation of America (HCA), Sealy, The Sports Authority, Staples, Toys "R" Us, Warner Music Group and The Weather Channel.

 

[3db]

Heck Bain owns a lot of stuff

The firm was founded in 1984 by partners from the consulting firm Bain & Company. Since inception it has invested in or acquired hundreds of companies including AMC Entertainment, Aspen Education Group, Brookstone, Burger King, Burlington Coat Factory, Clear Channel Communications, Domino's Pizza, DoubleClick, Dunkin' Donuts, D&M Holdings, Guitar Center, Hospital Corporation of America (HCA), Sealy, The Sports Authority, Staples, Toys "R" Us, Warner Music Group and The Weather Channel.

HMMM sounds like Thiel isn't going away anytime soon. Tha'ts a good thing.

 

[psbfan9]

Mitt's firm?

Not without Viagra.

 

[monkish54]

Not without Viagra.

LOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOL

That's the funniest thing I have heard in a long time!

 

[psbfan9]

Maybe it was Harman Group expanding their portfolio. We'll know when see a $59.00 pair of Theil 6X9 car speakers.

 

[cpp]

HMMM sounds like Thiel isn't going away anytime soon. Tha'ts a good thing.

of course we really don't know if Bain is the firm or not.

 

[scott911]

I definitely hope Thiel does well as a result of this.

Most people with solid audio knowledge (one poster here obviously exempted) respect Thiel, both as a brand and as a collection of really good people passionate about high quality audio.

 

[Churlish1]

I definitely hope Thiel does well as a result of this.

Most people with solid audio knowledge (one poster here obviously exempted) respect Thiel, both as a brand and as a collection of really good people passionate about high quality audio.

---
As do I.

The Brand has a lot of Market Goodwill. Besides the physical assets of the organization, their intellectual properties have to be expansive. Thiel has had some very innovative technology, breaking new ground with their coaxial driver designs, phasing, numerous CES Innovative Award designations, etc. I'll never forget the first time I heard the 3.7. Great moment.

I just recently heard the SCS4T, and while I'm not sure of the companies current market positioning or success, I can't quite feel that the research and design expertise that Jim Thiel started the company with have completely been abandoned.

It was a sad day when the Audio World lost that visionary.

It's hard to forget too, that this is a company doing all of the research, design and manufacturing in the United States. A most definite high five to them.

 

[cpp]

In all the years I've been around audio, this is perhaps the only speaker maker that I have yet to hear any of their products.