Gibson acquires Philips’ audio and home entertainment business

Nashville-based guitar manufacturers Gibson Brands Inc. has acquired Philips’ WOOX Innovations: the audio, video, multimedia and accessories arm of Philips.

Gibson will pay US$135m plus an undisclosed license fee, which spans an initial seven-year-period. This substantial purchase further solidifies Gibson’s ambition “to be the largest music and sound technology company in the world”, according to a statement released this morning. Gibson also recently invested in audio brands TEAC and Onkyo.

Gibson Brands’ Chairman and CEO Henry Juszkiewicz says of the purchase, “By acquiring Philips’ audio and home entertainment business, our goal is to continue to provide the most exceptional consumer audio products and experiences in the world. I am thrilled to extend the reach of Gibson Brands around the world and to welcome this great team to the Gibson family.”

“Philips and Gibson Brands have played significant roles in shaping the home entertainment and music industries”, adds Philips CEO Frans van Houten. “With this agreement, the Philips brand will continue to be an innovation leader in this space.”

Gibson launched in 1902, as Michigan-based, one-man operation The Gibson Mandolin-Guitar Mfg. Co., Ltd. By the ’30s, they were one of the leading guitar manufacturers in the US.

Gibson instruments have been used by the most notable guitarists of recent history, such as Eric Clapton, Jimmy Page, Slash, Chet Atkins, Duane Allman, Bob Marley and Pete Townsend.