Polk acquires financial stake in Genesis Technologies

Loudspeaker manufacturer Polk Audio announced on December 31 that it had acquired an interest in Genesis Technologies, manufacturer of both loudspeakers and digital products. Not only did Polk invest $500,000 in Genesis convertible preferred securities, it also obtained a three-year option to purchase the Colorado-based high-end audio company, which is led by three industry veterans: Arnie Nudell (co-founder of Infinity), Paul McGowan (co-founder of PS Audio), and Mark S. Schifter (co-founder of Audio Alchemy).

Commenting on the deal, Polk CEO George Klopfer observed (trying hard not to give too much away): "This investment cements a closer relationship between Polk and Genesis. Already our business dealings with Genesis, involving our cooperation in creating the Eosone line of products sold through Best Buy Company, have produced valuable benefits for both companies.

"In the meantime, we note that sales of Genesis' own line of products have grown at a very satisfying rate in the last year or two. Accordingly, we are pleased to be able to provide this additional financing to them to enable them to continue their recent growth.

"Genesis has been able to firmly establish for itself an enviable reputation among the most knowledgeable and affluent buyers of audio products around the world, for designing and building the very best, no-holds-barred, reference-class products available in the market today."

Both Polk and Genesis have been financially involved with other audio companies in the past: formed in 1991, Genesis was originally partnered by Canadian loudspeaker conglomerate Audio Products International (Mirage, Energy, Sound Dynamics), until Nudell and McGowan bought API out in 1994. In the late '80s, Polk had a financial stake in the company that owned British speaker manufacturer KEF.