McIntosh, a renowned brand of high-end luxury audio equipment, is acquired by Bose.

• The McIntosh Group will be acquired by Bose Corp., granting the Massachusetts-based company control over one of the most renowned brands in high-end audio.
• Bose CEO Lila Snyder revealed to CNBC in an interview that the acquisition grants the company entry into the high-end luxury audio market.
• In 2020, Snyder became the CEO of Bose and did not disclose the terms or price of the deal. Prior to the acquisition, McIntosh was owned by Highlander Partners, a private equity firm based in Dallas.

The McIntosh Group will be acquired by Bose Corp., granting the Massachusetts-based company control over one of the most renowned brands in high-end audio.

Lila Snyder, CEO of Bose, announced that McIntosh will continue to produce its renowned high-end audio equipment from its New York headquarters, and Sonus Faber, an Italian company that crafts handmade high-end speakers, will also be part of the deal.

Snyder stated in an interview with CNBC that the acquisition of two audio workshops would grant Bose entry into the high-end luxury audio market.

She stated that there is an opportunity for luxury products that appeal to consumers who are more discerning, interested in heritage and storytelling, and value the handcrafted nature.

In 2020, Snyder became the CEO of Bose and did not disclose the terms or price of the deal. Prior to the acquisition, McIntosh was owned by Highlander Partners, a private equity firm based in Dallas.

Since 1949, McIntosh has been producing high-end audio equipment, and one of its products can be purchased for tens of thousands of dollars. On the other hand, Sonus Faber offers a pair of speakers that cost $140,000.

Bose's purchase indicates its ability to adapt to the intensified competition in the headphone and audio electronics market, despite being a privately held company that does not disclose annual revenue. With approximately $3 billion in sales in 2023, as reported by Forbes, and a workforce of around 3,000 employees, Bose remains a formidable player in the industry.

Bose enters the high-end luxury audio market

In 2023, luxury audio, defined as products priced above $5,000, experienced a 12% growth to reach approximately $2.8 billion in total sales, according to Futuresource Consulting. This growth presents an opportunity for Bose to expand into a more affluent market, as their products, such as a pair of Bose headphones, can cost up to $350.

She stated that the customers we are not effectively reaching with our technology and products are distinct.

Snyder did not dismiss the possibility of Bose producing McIntosh-branded headphones or other products.

Synder stated that there is a significant opportunity for wearables in the luxury and high-performance market, which is something we can expect to see from us in the future.

Bose is renowned for its speakers and headphones, such as the QuietComfort line, which was among the first noise-canceling headsets to be released in 2000. Additionally, the company offers soundbars, wireless earbuds, speakers, and audio equipment for cars. Last year, Bose divested from a group that constructed sound systems for auditoriums and other professional settings.

Since Bose was one of the few high-end brands in the audio market, it has grown.

Bose now faces competition from some of the largest corporations globally, such as Apple, which acquired Beats Electronics for $3 billion in 2014 and introduced the AirPods in 2016, targeting the premium headphone market.

There is also new audio-focused competition for Bose.

Earlier this year, Sonos, renowned for its in-home speakers, launched its first noise-canceling headphones. However, the company is currently facing backlash from users following an app redesign in May. Meanwhile, Bose has been competing with smart speakers from companies such as Amazon and Google for the past decade, often pricing their products aggressively to encourage adoption.

The acquisition of two luxury audio workshops could aid Bose in expanding its presence in the in-car stereo market, which Snyder stated accounts for approximately one-third of the company's total business. Sonus Faber manufactures speakers for Lamborghini vehicles, and some Jeeps feature a McIntosh-branded audio system. One potential opportunity that Bose is enthusiastic about is the integration of its noise-canceling technology into electric cars to enhance the vehicle's ride experience, she said.

""Luxury or highest-performing vehicles require cutting-edge technology, and Lamborghini is a great example of a brand that can't go to certain places due to this requirement," Snyder said."

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