Since its founding in 1946, Knowles has leveraged its core competency in acoustic technology to build on its expertise in hearing aid transducers and MEMS microphones through a significant investment in R&D and low-cost, high-volume manufacturing. All of this has resulted in a steady stream of new products and opportunities for growth in highly competitive markets. Employing approximately 4,500 people, Knowles has achieved sales approaching $300 million. It has sales offices located throughout the world with operations primarily in China, Malaysia, and the United States.

A New Era of Leadership
For over 50 years, Knowles was privately owned by its founder, Hugh Knowles, and his family. In June 1999, Knowles Electronics began the transition from a family-owned business into a new era when it was sold to an independent private equity firm. Under new management, Knowles began a significant restructure and emphasis on core product development to pave the way for the future.

In 2005, Knowles was positioned for its third consecutive year of record sales and EBIT with more than 75 percent market share in acoustic components in the hearing health industry and the SiSonicTM MEMS microphone on the rise. With this track record and the process of restructuring completed, its private equity investor saw an opportunity to transition the business to a stable, long-term position. The Knowles management team participated actively in the sale process, seeking a new owner that would allow autonomy while providing a strong foundation for additional growth. After a highly competitive, comprehensive, lengthy, and rigorous process, Dover was the successful bidder.

“Dover was an attractive buyer because they were willing to allow us to operate as an independent operating company. As part of the Dover group, Knowles will be a platform for growth with much-expanded opportunities for further investment. The financial strength of the Dover group of companies will be a great asset to Knowles as we grow our Electronics and Acoustics divisions,” said John Zei, president and CEO of Knowles.

The sale of Knowles to Dover provided no interruption in how the business was run, with its current management still in place and no change in day-to-day operations. The legacy and rich history that has made Knowles such a successful company for over 60 years has been successfully preserved within Dover’s secure financial framework.

Long-term Growth
Joining Dover in September 2005, Knowles has continued to pursue an aggressive program of product and manufacturing expansion. In its first few years as a Dover company, Knowles introduced multiple products to its portfolio and opened three new manufacturing facilities. Dover has enabled the company to sustain its leadership position and growth rate in its markets.

“It is especially important to us that Dover brings stability, a long-range view of our business, and significant financial resources to the relationship. The difficult private equity debt structure that prevented us from growing as rapidly as we wanted in the past has been eliminated with Dover as our parent,” Zei said.

Most recently, Knowles shipped its 300 millionth SiSonicTM MEMS microphone. This milestone illustrates Knowles’ commitment to quickly and smoothly ramping up production for high-volume applications such as mobile phones and other consumer electronic devices with high-quality, innovative, and cost-effective micro-acoustic solutions. As the founder in the field of MEMS microphone technology and subminiature transducers, Knowles is dedicated to continuing this track record with new, innovative products. The strong support for management that Dover provides will allow Knowles to do exactly just that.