Recognizing the difficulties Cerwin-Vega had faced this past year - requiring them to solicit protection from creditors - the Stanton Group had become instinctively attracted to owning one of the greatest names in the speaker industry over the last 30 years, with the obvious synergies this would bring. "Cerwin-Vega’s technology is perfectly complementary to the current audio lines owned by the Group - namely Stanton, Pickering and KRK," said Cohen. "The customer base is very much the same in the pro audio industry, with Cerwin-Vega’s primary markets being DJs and musicians."
During the course of this year Cerwin-Vega’s management had already reduced the head count from 250-plus to around 80, and after completion the plans are to retain most of the existing staff. Although Gene Czerwinski, who founded the company in 1954, is expected to retire from the business, his support and advice will continue to be sought out and welcomed in the Company’s new development program. Cerwin-Vega will continue operating from its main Simi Valley facility, with Stanton Group introducing new management, reporting directly to Gerard Cohen.
The acquisition is expected to bring a wealth of benefits to end users - including faster delivery, better back-up, and onsite service - as well as many new competitive products to be launched in 2002 and 2003. Cohen explained: "The aim is simply to return Cerwin-Vega to profitability, to build the finest loudspeakers in their core markets and regain all market share lost over the last few years."
(Lee Baldock)
