A look at how two of the industry's major acquisitions are playing out
By Nancy Klosek
One match pairs a home networking systems/structured wiring market leader with an electrical distribution giant. The other marries a duo of high-profile loudspeaker companies with equally rich but diverse legacies.
Two separate situations and two unique sets of motives, to be sure, spurred these respective acquisitions. But the duenna supervising the courtships, in both cases, was one and the same: necessity.
The acquisitions of On-Q Home by Legrand and Jamo by Klipsch have raised myriad issues, prompting Custom Retailer to examine the whys and wherefores of these marriages, and what it is about the consolidations that makes each party to them a stronger marketplace presence.
Why will it be worth it to installers, retailers, distributors and builders, we asked, to sustain business relationships with these newly consolidated entities? And what plans are being laid for the near- and long-term future?
ON-Q HOME AND LEGRAND
On-Q Technologies, known as On-Q Home, was acquired in late February by Legrand and brought together with the Greyfox unit of Pass & Seymour.
Says On-Q Vice President of Marketing David Hanchette: "Our presidents had dialogue about the industry—where it was going, how it was growing, where the various players were—for about a year" before discussions accelerated and grew increasingly serious late last fall.
Before the acquisition, Hanchette explains, Legrand's primary channel to the market had been electrical distribution. "What On-Q brings to it," he says, "is the dominant structured-wiring brand, access to low-voltage channels and powerful marketing programs and solutions which have carried us from the outset of this venture six years ago to where we are—the leader in the structured-wiring market.
"So the synergies were there," continues Hanchette, "because there's lots of crossover between the electrical and low-voltage sides. Our focus on providing strong marketing and taking product into the marketplace will combine with the great job they do on new-product development. And both teams have a breadth of experience that can be leveraged on behalf of each other.