Sennheiser considers selling its Consumer audio business
Sennheiser said it is looking for a partner to buy or invest in their consumer audio electronics business, which includes headphones and soundbars. The company itself plans to focus entirely on professional technology, which includes its own Sennheiser brand, Neumann-branded microphones, and business communications devices.
The press release said Sennheiser wants to improve its position in the competitive headphone and soundbar market, but for that the company needs an investor. The company will soon start negotiations with potential buyers.
Sennheiser co-owner, Daniel Sennheiser, explained that the company itself will focus on three areas of professional audio, and will work with a partner in consumer electronics. “Our devices are known for their great sound and unique character,” he added. “These are important aspects that drive customers to choose our products in the premium headphone, hearing aid, soundbar and audiophile segments. It is on the basis of these strengths of ours that we would like to work together with a partner. “
The German edition of Handelsblatt recently published an interview with Daniel and Andreas Sennheiser (the second co-owner of the brand), where the brothers talked about the reasons for selling their part of the consumer audio business. First, the company got into the TWS headphone race too late. Despite the fact that Sennheiser set a sales record in 2019 (393 million euros), after taxes and payments the company was left with a negative balance sheet.
What’s more, headphone sales in general are not doing so well due to high competition. In the summer, the company laid off 650 employees worldwide, and now Sennheiser employs approximately 2,800 people. In an interview, the brothers noted that a full sale is not the only option and they are considering all options. The main thing is that “after the restructuring, the business becomes stronger”.