Bang & Olufsen — M&A Activity 2017

Mar 13, 2017

Struer, 2017-03-13 08:05 CET (GLOBE NEWSWIRE) -- Company Announcement no. 16.16

Bang & Olufsen a/s (“Bang & Olufsen”) has entered into a share purchase
agreement with its long term partner Tymphany Acoustic Technology HK Limited
("Tymphany") for the sale of all the shares in Bang & Olufsen’s Czech assembly
subsidiary, Bang & Olufsen s.r.o. (the "Transaction"). The divesture of the
assembly facility expands Bang & Olufsen and Tymphany’s successful partnership
model and supports Bang & Olufsen’s strategy to focus on the core capabilities
with an agile and asset light footprint.

The cash flow impact to Bang & Olufsen is DKK 123 million and the accounting
gain is expected to be DKK 33 million.

As part of the Transaction, Tymphany will produce Bang & Olufsen products in
the Czech factory as a trusted and selected supplier to Bang & Olufsen, and the
entering into a long term purchase agreement as part of the Transaction will
ensure stability in the future supply of high quality products to Bang &
Olufsen, and the Transaction will thereby not impact the operating performance
of Bang & Olufsen. The Transaction will enable Bang & Olufsen to further
strengthen its areas of core competencies within acoustics, design, interaction
and quality.

All of Bang & Olufsen's Czech employees will be transferred to Tymphany at the
time of closing in order to ensure the delivery of unique innovation, visual
design and craftsmanship which Bang & Olufsen is known for.

The closing of the Transaction remains subject to certain closing conditions,
including the approval from the landlord of the Czech factory to the
assignment of the lease from Bang & Olufsen to Tymphany, the approval from the
Czech competition authorities and the non-occurrence of a material adverse
change to the financial position of Bang & Olufsen s.r.o. prior to closing.
Closing is expected to be completed within the next months.

Ole Andersen
Henrik Clausen

Chairman of the Board CEO

For further information, please contact;

Investor Relations, Claus Højmark Jensen +45 2325 1067

Press, Morten Juhl Madsen +45 4030 8986

About Tymphany

Tymphany designs and manufactures some of the most innovative consumer and
professional audio systems on the market. The company also sells a full line of
speaker drivers under the Peerless by Tymphany brand. The company’s roots go
back to 1926 when Peerless was founded in Denmark. In the proceeding 90+ years,
Tymphany has grown to be a premier audio ODM with over 4,200 employees. For
more information visit http://www.tymphany.com

About Bang & Olufsen

Bang & Olufsen (www.bang-olufsen.com) was founded in Struer, Denmark, in 1925
by Peter Bang and Svend Olufsen, two innovative, young engineers devoted to
high quality audio reproduction. Since then, the brand has become an icon of
performance and design excellence through its long-standing craftsmanship
tradition and the strongest possible commitment to high-tech research and
development.