Freedman Group acquires RR'S Lectrosonics with plans for heavy investment

RIO RANCHO — Lectrosonics, a manufacturer of professional wireless systems headquartered in Rio Rancho, is getting new ownership that comes with heavy investment in the company, including ramped-up production, pay raises, new staff and plans for expansion.

On Thursday, the Freedman Group announced the purchase at a gathering at Hotel Chaco. It is the parent company of RØDE, Mackie, Aphex, SoundField and Event Electronics, Aphex Event Electronics and Crate guitar amplifiers. The company was founded by Peter Freedman in Sydney, Australia, in 1989.

Lectrosonics, founded in 1971, has been at the forefront of UHF wireless audio technology for film, broadcast and professional theatre applications for more than five decades, receiving a 2017 Academy Award for its Digital Hybrid Wireless technology, according to a press release on the company’s sale.

“They’re number one in the world in what they do. They’re probably a little too humble,” Freedman said in an interview ahead of Thursday’s announcement. “To make the kind of technology that they do, I’ve tried to get involved in that area for nearly 30 years, and I gave up. There’s a kind of magic in high-end electronics … it’s like fine art; very, very specialist.”

Freedman said the there’s maybe three companies in the world that can do what Lectrosonics does, and “they’re at the top of the tree.”

“We are thrilled to welcome Lectrosonics to The Freedman Group family,” said Freedman in the press release. “For decades, Lectrosonics has been synonymous with the highest possible performance along with unmatched reliability and innovation in professional wireless audio. Their uncompromising commitment to quality perfectly aligns with our own values and strengthens our position as a global leader in professional audio solutions.”

The development has been it the works for about six months, according to Freedman.

“We came to them and we wanted to work with them on a project,” Freedman said. “They’ve been pursued by so many companies over the years and just didn’t want to do it because the culture fits wasn’t right. It was just the right place at the right time, and we’re similar people, so they went, ‘Wow, we can work with you guys.’ Everything aligned. I’m stunned, to be honest with you. It’s like a dream.”

He’s so impressed with their work, he said, that he carries one of their transmitters in his pocket at all times.

According to the press release, the acquisition includes the Lectrosonics brand, complete intellectual property portfolio, factory buildings in Rio Rancho, and an array of production machinery and equipment. The Freedman Group will continue to operate Lectrosonics from its existing facilities in New Mexico and maintain the current management team “to ensure continuity and preserve the brand’s unique identity and customer relationships,” the release states.

“Joining The Freedman Group represents an exciting new chapter for Lectrosonics,” said Wes Herron, Lectrosonics president. “With its global reach and shared passion for audio excellence and in-house manufacturing, we look forward to accelerating product development and expanding our market presence while maintaining the quality and reliability our customers expect.”

Freedman plans to invest heavily in the local company from the start, including immediate 5% raises for current staff, new staff and expansion.

“We have a big manufacturing plant in Australia, but now, of course, with President (Donald) Trump’s tariffs, that’s obviously a big concern for everybody. We were thinking, ‘What are we going to do?’ And again, everything is aligning,” he said. “We’re going to build a huge factory here, but we can do it fast because most of the facilities are there. So from nothing (here) now, we have another massive manufacturing facility. … We’re going to invest heavily, looking for a lot of staff, at least a couple hundred, and we’ve got quite a quite a few million to pour into (research and design) … it’s not really limited, to be honest with you.

“There’s a lot of products in lots of areas to expand it right now,” he continued. “They’ve already got a fantastic line, the best in the world. We’re just going to make that and run it through our channel. … We’re going to build a place so we can ramp up production.”

Freedman said the goal is to move Lectrosonics from a niche company that does runs of 50 or 100 products and make it bigger, even 10,000, “and when you do that, the price drops. We got 118 countries we’ve distributed in, 8,000 dealers. We’re very, very strong in distribution worldwide, so we’ll just turn that on, and then we’ll start (research and development) projects. Within the next two years, it will be a completely different company.”

“The announcement by Lectrosonics today comes with an immediate increase of 200 jobs, a significant investment in advanced manufacturing and expanded research and development. In addition, this opportunity has a potential for significant job growth to make Lectrosonics one of the biggest employers in Rio Rancho,” said Jerry Schalow, president and CEO of the Rio Rancho Regional Chamber of Commerce.

Even though he’s from Australia, Freedman says he believes in American manufacturing. “Without the United States, I wouldn’t have a company,” he said.

He cited another company The Freedman Group bought about 18 months ago, Mackie, that used to manufacture in Seattle, “and then they stopped and moved it all to China. I’m bringing it all home, so we’re all about ‘Made in the USA,’ and you can if you have the gear,” he said. “China is not cheaper. People made a mistake by leaving.

“‘Made in the USA’ means something to people everywhere in the world, it’s just that it’s hard to do it; it’s expensive. But if we get the prices right, it’s no problem. The country’s got a great name for technology.”

He thinks it’s a move that could get the attention of Trump’s administration. A member of the company’s board is the ex-ambassador of Australia to the U.S. who knows Trump well, he said. “Even though this is not a massive 100,000 people, I think they’re going to be interested in it, so we’re going to try to get it in front of the president and say, ‘Hey, here’s an example of a company that is doing what you’re saying and is happy about it. Let’s bring back Made in the USA.’

“On that part, he’s right,” Freedman said. “Too much has left. You guys used to make everything, and that whole industry just disappeared, and it needs to come back. You can’t be reliant on the outside. You have to have sovereign capacity.”

“Lectrosonics, along with Intel, is an excellent example of Rio Rancho leading the way in reshoring advanced manufacturing in New Mexico,” Schalow said.

Freedman is also looking to invest in the people. He announced the 5% raise to Lectrosonics employees attending Thursday’s announcement.

“We work hard, we play hard and we share in the success,” he said. “If people commit to the company and we do well, then why wouldn’t I share? I’d be stupid not to.”

He also talked about his passion for the audio industry as a whole.

“It’s about more than what they make. I love it and it’s good business and money, but for me, it’s bigger than that. It’s part of my life, that passion,” he said, noting that with his parents founding Freedman Electronics in 1967, which he grew his company from, he’s been around sound equipment since he was a toddler.

“My group is now the biggest pro audio company in the world, which is bizarre for me to say,” he said about the acquisition of Lectrosonics. “They’re geniuses, and too humble. But we’re loudmouths, so they’re all gonna know.”