Price Gouging Top End Digital Radio Firm Sold

The top end radio that costs up to 80% more in Australia
than what consumers could buy the same sound system for online and in stores
overseas is now distributed by International Dynamics (InterDyne) via
specialist retailers after several mass retailers failed to range the digital
radio initially because of price issues.

In Australia a Tivoli Audio Music System 2 with Bluetooth
sells for $999, the same system is available to purchase online at Amazon for
$399. The Tivoli portable speaker sells in Australia for $319 while in the USA
the same system is $185. The Tivoli Music System 3 is $299 in the USA, $599 in
Australia.

Serruya Private Equity (SPE) purchased Tivoli Audio late
last week with the Company now looking to expand distribution around the world.

The family-managed venture group has interests in 33
companies with a total of $1.5 billion in revenues.

Tivoli is the company’s first consumer electronics brand.
Tivoli, founded in 2000, makes design-oriented high-performance tabletop radios
and tabletop hi-fi systems priced from $149 to $699 in the USA and $319 to
$1,249 in Australia.

The ownership change follows a February announcement that
CEO and company founder Tom DeVesto left the company to serve as a design
consultant.

DeVesto was majority owner.

Also in February, Tivoli Audio’s board appointed Lisa
Kaufman, a partner in Levy Capital Partners, as interim CEO. Kaufman and Levy
Capital Partners served as advisers to Tivoli Audio since 2014.

Levy Capital Partners also served as the adviser to Tivoli
Audio in connection with the Serruya purchase.

SPE describes itself as “a leading investment firm with a
longstanding and successful history of enhancing brands.” Tivoli Audio has
headquarters in Boston and Utrecht, Netherlands. It describes its mission as
offering “beautifully designed, simple-to-use, high quality audio products to
consumers at a fair price.”

However the fair price statement appears to be seriously
misleading in Australia.