The end of a 22 year journey for me…Masimo to acquire Sound United for $1.03 Billion

Written By Jim Minarik

When Darrell & Kathy Issa sold their car alarm business (Viper, Clifford, etc) in 2000 to Trivest - the leading private equity firm for Founders, I resigned as CEO of Clarion Corporation of America, Megan and I invested our life savings and I joined as CEO of what was then known as Directed Electronics. We had 100 emplyees.

In 2004 we acquired Definitive Technology to begin our expansion into the audio business. Shortly after, we acquired Polk Audio, went public in 2005 on the NASDAQ, then private again in 2011 when Charlesbank Capital Partners acquired us. In 2012, we created Sound United as the holding Company for our audio businesses.

While I retired as CEO in 2016, I continue to this day as a Board member. My enormously talented friend and colleague of many years, Kevin Duffy took over as CEO, more than tripling the size of Sound United. He and his team have continued growing the business organically and through multiple additional acquisitions, including: Denon, Marantz, Boston Acoustics, Bowers & Wilkins (B&W) and more. Today Sound United employs nearly 2000 across the globe.

I could not be prouder of the team or more pleased with this outcome. I am also incredibly grateful for and want to give a special shout out to Troy Templeton of Trivest, and Mike Choe of Charlesbank for their partnership, vision, leadership and friendship in helping to build Sound United into the global audio leader it is today. Most importantly, a HUGE THANKS to my wife and life partner Megan Minarik, who has been with me every step of the way on this journey.

Here are the details:

  • Masimo (NASDAQ:MASI) will acquire Sound United, an innovator of premium, high-performance audio products, for ~$1.03B.

  • MASI will leverage Sound United’s expertise across consumer channels to accelerate distribution of Masimo’s expanding portfolio of consumer products.

  • Masimo intends to finance the acquisition through a combination of cash on hand and borrowings under a new credit facility.

  • The transaction is expected to be immediately accretive to Masimo’s non-GAAP EPS upon closing, which is expected near the middle of 2022.

  • Post-closing, Kevin Duffy will continue to lead Sound United, reporting directly to Masimo CEO Joe Kiani.

  • Sound United operates consumer brands Bowers & Wilkins, Denon, Polk Audio, Marantz, Definitive Technology, Classé, and Boston Acoustics.

Jim Minarik
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