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 The
Stanton Group has announced the purchase of the assets and brand
name of Cerwin-Vega Inc.
Confirming the
company's successful bid, Stanton President and CEO Gerard Cohen
stated, "We are very excited about this opportunity to grow and
expand our business portfolio. We feel that the strength and heritage
of the Cerwin-Vega brand name will be a strong complement to our
existing businesses and create synergies in the future.
"We also
clearly recognize the value of the existing customer base and are
committed to maintaining strong business partners going forward.
Stanton will stand strong behind the Cerwin-Vega product and brand name."
Recognizing the
difficulties Cerwin Vega had faced this past year - requiring them to
solicit protection from creditors - the Stanton Group had become
instinctively attracted to owning one of the greatest names in the
speaker industry over the last 30 years, with the obvious synergies
this would bring.
"Cerwin
Vega's technology is perfectly complementary to the current audio
lines owned by the Group - namely Stanton, Pickering and KRK,"
said Mr. Cohen. "The customer base is very much the same in the
pro audio industry, with Cerwin Vega's primary markets being DJ's and musicians."
During the course
of this year Cerwin Vega's management had already reduced the head
count from 250-plus to around 80, and after completion the plans are
to retain most of the existing staff. Although Gene Czerwinski, who
founded the company in 1954, is expected to retire from the business,
his support and advice will continue to be sought out and welcomed in
the Company's new development program.
Cerwin Vega will
continue operating from its main Simi Valley facility, with Stanton
Group introducing new management, reporting directly to Mr. Cohen.
Cerwin Vega's
blueprint will be to restore its distribution and reputation as one
of the finest audio producers in the world, to keep the name
integrity and to use all synergies between the other lines at Stanton
Group to design, produce and distribute more efficiently, which may
involve some changes in their sales network.
The Stanton
Group's immediate aim is to continue addressing Cerwin Vega's core
markets of professional sound, hi-fi, home cinema and car hi-fi - but
it will review all business activities carefully before making any
long-term decisions.
The Company will
be examining all facets of the current operations including expanding
its existing operation and manufacturing facilities to include other
areas of the world. "The research of the right global partners
is going to be one of our priorities," stated Mr. Cohen.
The acquisition is
expected to bring a wealth of benefits to end users - including
faster delivery, better back-up, and onsite service - as well as many
new competitive products to be launched in 2002 and 2003.
Mr. Cohen states,
"The aim is simply to return Cerwin Vega to profitability, to
build the finest loudspeakers in their core markets and regain all
market share lost over the last few years."
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