(BFM Bourse) – Separate to better evolve solo. Cabasse Groupe splits into two entities with a view to writing a new score for its audio branch and giving it the means to achieve its ambitions. This independence is accompanied by a capital increase of 1.5 million euros to develop Cabasse’s know-how in luxury acoustics, particularly internationally.
Cabasse Groupe has just pressed the button play of its split operation, announced on October 17. The company will give its independence to its subsidiary specializing in loudspeakers, under the name Cabasse when the other products will evolve under a new name, namely Veom Group.
To better promote its audio branch, Cabasse Groupe therefore decided to part with it and list it on the stock market. The management of Cabasse Groupe thus intends to echo “the value of the luxury audio branch, by giving independence to this growing activity, whose model and strategy are distinct from home automation”.
Concomitantly, with the project of exceptional distribution in kind to the shareholders of Cabasse Groupe of 50.1% of the shares making up the share capital of the subsidiary Cabasse, the shares of Cabasse will be the subject of a request for listing on Euronext Growth.
At the same time, Cabasse is raising funds for a target amount of 1.5 million euros to give its audio branch the means to develop its know-how in luxury acoustics, particularly internationally.
The group specifies that it has already received subscription commitments in the amount of 1.10 million euros, or 75% of the offer of new shares on the basis of the offer price, or 9.42 per share. In a desire to retain its future shareholders, the company Cabasse also plans to carry out, at the end of this capital increase project, a free issue of stock warrants.
Any Cabasse shareholder who has retained the Cabasse share continuously for 12 months from the date of settlement of the new shares relating to the upcoming capital increase will be given one free share subscription warrant (BSA ) for one Cabasse share held.
A 70-year-old high-fidelity sound pioneer
For music lovers, Cabasse rhymes with high-fidelity sound. The company’s expertise in the perfect reproduction of sound dates back to the 1950s. Descendant of several generations of French luthiers, Georges Cabasse is an electrical engineer but also a music enthusiast. He nurtures a dream, that of reproducing as faithfully as possible the sound of the concerts he enjoys. A dream that was transformed with the creation of the Cabasse house in 1950.
Ten years later, Georges Cabasse imagined a unique place entirely dedicated to perfect sound, bringing together all the trades necessary for the development and production of the first Cabasse products for the general public and professionals. The eponymous company will thus establish itself as one of the pioneer manufacturers in the manufacture of high-fidelity loudspeakers.
Since its creation, Cabasse has distinguished itself behind several large-scale projects in France. For example, the company was behind the sound system for the Parisian cinema of the Grand Rex in 1952, or that of the Geode in 1984. The challenge was considerable for the emblematic monument of the Porte de la Villette in Paris to ensure the high-power sound system and in high fidelity without compression or coloring of the only Omnimax cinema [un procédé cinématographique permettant la projection de films sur un écran de cinéma hémisphérique, NDLR] in the world.
In 1988, Cabasse leaves its favorite area and leaves the rhinestones and sequins of the seventh art. The company is in charge of equipping the 10 enclosures of the nuclear aircraft carrier Charles de Gaulle, to transmit orders to the crew with an acoustic power of up to 136 decibels. Or as much as the takeoff of an airplane perceived at a distance of 100 meters.
The know-how of the high-end loudspeaker manufacturer crossed borders until the Japanese Canon fell under the spell of the French brand. In 2006, the French group was bought by the Japanese electronics giant, through its European subsidiary, with a view to integrating its know-how into its screens. The high-end acoustics specialist returned to France and joined Awox at the end of 2014, a few months after the Montpellier manufacturer of connected objects for the home was listed on the stock market.
“We are happy to be able to associate a world-renowned brand of high-fidelity acoustics with a leader in the world of connected objects and associated connectivity technologies for the smart home”, then welcomed the CEO of Awox. Alain Molinie.
The ambition is clearly displayed, that of taking advantage of Cabasse’s know-how in the reproduction of high-quality sound and associating this technology with the connected solutions of Awox, which will become Cabasse Groupe in 2020, once the sale of its connected light bulb activity finalized.
Alain Molinié and his teams have also carried out a profound transformation of Cabasse in recent years. “We invested 12 million euros in Cabasse and devoted the first three years to its industrial transformation”, recalls its CEO. The group is embarking on a major strategic shift by positioning itself in the “Luxury Wireless Audio” segment, ie connected wireless luxury audio.
A range of products for the most demanding audiophiles
To satisfy the most demanding audiophiles, Cabasse is launching “The Pearl” in 2018, its range of high-end connected speakers. Since then, 8 new “The Pearl” systems have been created. In all, four families of solutions have been marketed to date (high-resolution connected active speakers, classic passive and connected traditional solutions, home cinema and custom-made with speakers built into the wall or ceiling) bringing to around a hundred the number of products offered by the company.
Cabasse intends to take an active part in the connected wireless luxury audio market given consumer preferences for portable devices. The group observes a change in the habits of music lovers, who want wireless connectivity to be integrated into a multitude of devices such as sound bars, headphones or home cinema systems.
With its range of products, Cabasse intends to capture this audiophile clientele looking for high-end solutions to listen to their favorite sounds. Two to four products are launched each year, with selling prices between 2,000 and 25,000 euros. The sales potential for each product is 1 to 2 million euros per year. To date, Cabasse does not offer wireless solutions below 1,000 euros and only one between 1,500 and 2,000 euros. The company has also just enriched its product range with the release of its Rialto connected speakers, the selling price of which is 2,990 euros.
Boost export sales
The upmarket strategy is visibly paying off. The Ebitda margin (gross operating surplus) was 5% last year compared to a negative rate of 13% in 2019. Its revenues fell from 6.3 million euros in 2019 to 11 million euros in 2021. Over the 2021-2025 period, Cabasse aims to generate average annual growth of more than +15%. In the medium term, the group is aiming for an Ebitda margin of 15%, thanks to solid control of its fixed costs and, above all, a move upmarket of its products.
At the same time, the company intends to increase the share of its export sales, which represented 38% of its turnover in 2021 and 45% in the first nine months of the 2022 financial year, in order to bring them to 80%. of its long-term activity.
The quality of Cabasse products is unanimously recognized by music lovers. It now remains to convince investors that Cabasse Group’s choice to launch Cabasse’s solo career was the right one to reveal all the talent of its audio branch.
Sabrina Sadgui – ©2022 BFM Bourse
Are you following this action?
Receive all the information about Cabasse Groupe in real time: