Who bought ARC?

February 2007

Minnesota-based audiophile electronics manufacturer, Audio Research, accounted yesterday that they have been sold to Quadrivo SGR – the private equity firm that owns loudspeaker manufacturer Sonus Faber. Financial details were not reported for the deal but reportedly the asking price was between $1,000,000 and $2,000,000 for the company.

Founder, William Z. Johnson, will step down after 38 years of running the company but will still be involved in some design decisions. The remainder of the management team will remain in tact going forward.

It seemed evident that Audio Research will remain true to its audiophile heritage. The question of whether the new ownership would invest in bringing Audio Research into the world of multi-channel home theater was not answered in the release.

At $ 2 million it was a steal, hope he got cash and a long consultant contract.

That does not seem right.
I'm sure Audio Research is worth much more then that.
I could not find any article that disclosed the financials of that sale.

The price is misleading; since it was a tube amp company they are obviously being paid in 1965 dollars.

The omission in the press release (no home theater stuff) might be the reason the company was sold for the range indicated. Their customer base is aging (like me) and is not being replaced fast enough. What are their annual sales? That would give a better indication as to the fairness of the deal.