DGAP-News: paragon Acquires Speaker Manufacturer LPG and Expands Value Chain in Acoustics (news with additional features)
DGAP-News: paragon GmbH & Co. KGaA / Key word(s): Takeover
paragon Acquires Speaker Manufacturer LPG and Expands Value Chain in Acoustics
- Complete acquisition of LPG Lautsprecher-Produktions-Gesellschaft
- Development of value chain in Interior division and expansion of technology base for acoustics solutions
- Takeover enables completely independent production of speakers and digitally networked sound systems
- External sound speakers from LPG address important safety aspect of e-mobility
Delbrück, Germany, October 29, 2018 - paragon GmbH & Co. KGaA [ISIN DE0005558696] is acquiring Lautsprecher-Produktions-Gesellschaft mbH (LPG), headquartered in Neu-Ulm. With this acquisition, paragon is expanding its technology base for acoustics solutions and thus also its value chain in its Interior division. LPG has been a close partner of various automobile manufacturers, such as BMW, Volkswagen, Opel and Rolls Royce, for many years. The purchase price is EUR 3 million. The closing of the acquisition is expected to take place on October 30, 2018.
"LPG holds a lot of growth potential for us because it will allow us to strengthen our positioning in another key area of the automobile industry as a system provider," says Klaus Dieter Frers, Chairman of the Board of paragon GmbH. "The acquisition also represents further development of our vertical range of manufacturing in electromobility. Given the low noise produced by electric vehicles, LPG's external sound speakers address an important safety aspect in the mobility of tomorrow. We see enormous potential here."
LPG, founded in 1983, has 66 employees in Neu-Ulm, where its speaker systems are developed and produced. The product portfolio mainly includes tweeters and cone loudspeakers that are used especially in the automotive industry. LPG's customer base includes notable automobile manufacturers in the mid-range and premium segments. In addition, LPG develops and manufactures external sound speakers that make it possible for pedestrians and bicyclists to hear electric vehicles.
Going forward, LPG will operate under the name paragon electroacoustic GmbH. Dr. Dirk Olszewski, currently Development Manager in the Acoustics segment, and Oliver Munz, currently Managing Director of paragon movasys GmbH, will take over management. Both long-serving managing directors of LPG, Wolfgang Schmidberger and Reiner Kröner, will be responsible for leading roles in technology and operating activities at the Neu-Ulm site, as they have done until now.
"Since it was founded 35 years ago, LPG has impressed numerous providers from the automobile industry with its high-quality products," Rainer Kröner highlights. "With paragon as a partner from now on, we are improving our access to the automotive market and will be able to realize our growth potential even better by developing complete system solutions," Wolfgang Schmidberger adds.
In fiscal year 2017, LPG achieved revenue of around EUR 11 million and a positive operating result.
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Document title: paragon Acquires Speaker Manufacturer LPG and Expands Value Chain in Acoustics