Chinese tech company acquires former Philips speaker division

China’s AAC Technologies has acquired a majority stake in Premium Sound Solutions, the Dendermonde-based former Philips Sound Solutions division. PSS was sold to D&M Holdings in 2006, a Japanese owner of several audio and video brands, and subsequently in 2014 to Dutch private equity firms Value Enhancement Partners and Ardent Equity Management. The Flanders specialist in automotive speakers has enjoyed healthy growth over the past decade: the number of employees increased from 700 to over 3000 during this period, partly through international acquisitions. Last year, the company reported revenue of 350 million euros and a net profit of 27 million euros.

AAC, based in Shenzhen, develops and manufacturers a wide range of electronic components, including speakers, microphones, lenses and haptic solutions. It’s a major supplier of Apple, Samsung and Lenovo. According to Flemish newspaper De Tijd, the Chinese company will initially acquire an 80 percent stake in PSS for 320 million dollars. At a later date, the remaining share could change hands for as much as 205 million dollars, taking the total to 525 million dollars.

The take-over is subject to regulatory approval.