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LOUD Technologies Inc. (OTCBB:LTEC) announced today the acquisition of St. Louis Music Inc., a Missouri-based manufacturer, distributor and importer of branded musical instruments and professional audio products.
As part of this acquisition, St. Louis Music will become an indirect wholly-owned
subsidiary of LOUD Technologies Inc.
Founded in 1922 by the Kornblum family, St. Louis Music's products include
world-renowned Ampeg bass guitar amplifiers, Crate amplifiers, Crate Audio sound
reinforcement equipment, Alvarez guitars and string instruments, and Knilling
orchestral string instruments. In addition, St. Louis Music is one of the largest
distributors of music accessories, offering retailers a complete line of branded
accessory products.
"This acquisition demonstrates that Sun Capital Partners, our principal
shareholder, is committed to the expansion of our portfolio into related markets,"
commented LOUD's CEO Jamie Engen. "St. Louis Music has an impressive and
well-respected family of brands that open up a number of significant new opportunities
for LOUD Technologies."
Engen continued, "Both companies share a strong commitment to our customers
and employees, as well as mutual respect for our unique corporate heritage.
By combining our collective resources under one corporate umbrella -- from technology
and manufacturing, to engineering, product development and marketing -- we will
work together to bring even more innovative new products to our customers."
St. Louis Music's existing CEO Gene Kornblum will remain in his current position
and will report directly to LOUD Technologies' CEO Jamie Engen.
Gene Kornblum commented, "What attracted me to LOUD was their commitment
to developing and nurturing strong brand names like Mackie and EAW. Through
our mutual commitment to product design, creative marketing, as well as expansive
sales and manufacturing resources, LOUD and St. Louis Music are going to make
great contributions to the music industry."
Ted Kornblum, who represents the third generation of St. Louis Music's founding
family, will assume the position of Senior Vice President of Marketing and Artist
Relations for St. Louis Music and will continue to manage these activities for
the St. Louis Music family of brands, as well as help expand artist relations
programs for the Mackie, TAPCO and EAW brands. William Blair & Company,
L.L.C. acted as exclusive financial advisor to St. Louis Music in the transaction.
More information can be found at: http://10.1.1.133/invest/Securities/2005/8KFilings/03072005_acq.pdf.
About St. Louis Music
St. Louis Music is an 82-year-old family-owned manufacturer, distributor and
importer of branded musical instruments, accessories and equipment. The Company's
products include world-renowned Ampeg bass guitar amplifiers, Crate amplifiers,
Crate Audio sound reinforcement equipment, Alvarez guitars and string instruments,
and Knilling orchestral string instruments. In addition, St. Louis Music is
one of the largest distributors of branded music accessory products.
About LOUD Technologies Inc.
LOUD Technologies Inc. develops professional audio products under the brands
Mackie, EAW, EAW Commercial, TAPCO, SIA Software and Acuma Labs. Products from
LOUD Technologies' brands can be found in professional and project recording
studios, video and broadcast suites, post production facilities, sound reinforcement
applications including churches and nightclubs, retail locations and on major
musical tours.
Mackie, EAW, and TAPCO are registered trademarks of LOUD Technologies Inc.
in the United States and other countries. All other trademarks are the property
of their respective owners.
Forward-Looking Statements
Statements in this release that are "forward-looking statements"
are based on current expectations and assumptions that are subject to risks
and uncertainties. Actual results could differ materially because of factors
such as: market acceptance of new products; continued acceptance of existing
products; delays in product development and related product release schedules;
product price discounts; reliance on third party manufacturers and reliance
on sole or limited source suppliers for key components that could result in
component shortages and delays in product delivery, any of which may cause revenues
and income to fall short of anticipated levels; obsolete inventory or product
returns by distributors, resellers and retailers; warranty and other claims
on products; changes or delays in product shipments; technological shifts; the
availability of competitive products at lower prices; the continued ability
to protect the company's intellectual property rights; changes in product mix;
maturing product life cycles; product sale terms and conditions; the financial
condition of our customers and vendors; adverse results in litigation; the effects
of terrorist activity and armed conflict such as disruptions in general economic
activity and changes in our operations and security arrangements; continued
softness in retail spending or other changes in general economic conditions
that affect demand for our products; currency fluctuations; and vigorous competition.
For further information regarding risks and uncertainties associated with LOUD's
business, please refer to the "Management's Discussion and Analysis of
Results of Operations and Financial Condition" section of LOUD's SEC filings,
including, but not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q, copies of which may be obtained by contacting LOUD's investor
relations department at 1-866-858-LTEC (5832) or 425-892-6500, or on LOUD's
website at http://www.loudtechinc.com/invest/index.html
All information in this release is as of March 7, 2005. The company undertakes
no duty to update any forward-looking statement to conform the statement to
actual results or changes in the company's expectations.
LOUD Technologies Inc.
