Harman International Industries
|Traded as||NYSE: HAR
S&P 500 Component
Chairman & CEO
|Products||audio, electronic, and infotainment systems for automotive OEM's, home and computer systems, loudspeakers and electronics for audio professionals (concert halls, stadiums, airports, recording, broadcasting, and cinema)|
|Brands||Harman Kardon, Becker, JBL, AKG Acoustics, Lexicon, Infinity, Mark Levinson, Revel|
|Revenue||$6 billion (2015)|
|$902 million (2015 Q2)|
Number of employees
Harman International Industries, Incorporated (HII) is an American company that designs, manufactures and markets audio equipment for automotive, home, theater and other applications — as well as electronics for audio professionals. Headquartered in Stamford, Connecticut, HII maintains major operations in the Americas, Europe, as well as Asia and markets its products under more than twenty brands — prominently Harman Kardon, Becker, AKG Acoustics, JBL, Mark Levinson, Lexicon and Infinity.
HII's consumer group engineers and manufactures loudspeakers, CD and DVD players, CD recorders, amplifiers. Its professional unit makes audio equipment, such as studio monitors, amplifiers, microphones, and mixing consoles for recording studios, cinemas, touring performers, and others.
Dr. Sidney Harman and Bernard Kardon founded the predecessor to Harman International, Harman Kardon, in 1953. Both Harman and Kardon were engineers by training and had worked at the Bogen Company, which was then the top manufacturer of public address systems. Their collaboration helped to create a new industry: high-fidelity audio.
Acquisitions and expansion
In the 1970s, Sidney Harman accepted an appointment in the Carter administration as undersecretary of the Department of Commerce. When Harman took office in 1976, he sold his company to conglomerate Beatrice Foods to avoid a conflict of interest. Beatrice promptly sold many portions of the company, including the original Harman Kardon division, and by 1980 only 60% of the original company remained.
After he left government in 1978, he created Harman International Industries and reacquired a number of businesses he sold to Beatrice. The company continued its growth plan with a string of acquisitions throughout the 1980s that pushed Harman International's sales from about $80 million in 1981 to more than $200 million by 1986, and then to more than $500 million by 1989. Harman International went public in 1986 with a stock offering on the New York Stock Exchange. Cash from that sale was used to, among many other purchases, buy Soundcraft, a U.K. producer of professional mixing boards, in 1988 and later - Salt Lake City digital electronics producer DOD Electronics Corp. By 1990, Harman International was selling consumer audio gear under such brands as JBL, Harman Kardon, Infinity and Epicure loudspeakers, as well as professional audio systems with such brands as JBL Professional, UREI, Soundcraft, Allen & Heath, Studer, DOD, Lexicon, AKG, BSS, Orban, DBX, Quested and Turbosound (the last one now under the control of Music Group (company)).
In March 2015, Harman acquired the automotive division of Bang & Olufsen for 145 million euros ($156 million) for the unit as well as technology license fees. The purchase doesn’t include Bang & Olufsen’s consumer-electronics business.
Private equity attempt
Harman International Industries was to disappear from NYSE in Q3/2007 due to a buy-out by KKR and Goldman Sachs Capital Partners. However, as of mid September 2007, KKR announced they would back out of the deal. Harman shares plummeted by more than 24% that day, on the news.
Coincident with the buy-out deal, Dinesh C. Paliwal was hired as company President and CEO in July 2007. Paliwal was a veteran of the corporate turn-around. During his tenure as president of U.S. operations for ABB, the heavyweight Sweden-based automation provider, the company moved from a money-losing and siloed organization to one with double digit growth, doubled its share price in one year, and saw its bond ratings upgraded by Moody's and Standard & Poors.
On July 1, 2008, Sidney Harman was succeeded by Dinesh Paliwal as Chairman of the Board.
- AKG Acoustics - microphone/headphones
- AMX - video switching and control devices
- Audio Access - A/V controllers
- Bang & Olufsen Automotive
- Becker - car infotainment
- BSS Audio - signal processing
- Crown International - pro amplifiers
- dbx Professional Products - signal processors
- DigiTech - guitar products
- HardWire - guitar pedals
- HiQnet - audio digital network, based on Ethernet
- harman/kardon - home/car audio
- Infinity - home/car speakers
- iOnRoad - Personal driving assistance app
- JBL - home/car speakers & amplifiers, professional speakers
- Lexicon - digital processing
- Mark Levinson Audio Systems - home/car audio
- Martin Professional - stage and architectural lighting and effects fixtures
- Revel - home speakers
- Selenium - home, car and professional speakers, amplifiers, sound tables/mixers
- Soundcraft - mixing consoles
- Studer - mixing consoles
- Annual Report 2011
- Consumer Electronics Hall of Fame Introduction - January 2000
- President Jimmy Carter Letters - The American Presidency Project - Letters- October - 1978
- Turbosound Joins Music Group
- SEC Info - KHI Parent Inc - S-4 - On 6/20/07
- 'ABB Celebrates Turnaround' - Automation World Magazine - June 2006
- 'Harman to Retire From Company He Founded' - Twice Magazine