A coaxial loudspeaker includes a permanent magnet positioned between a generally coaxially aligned first transducer having an associated permanent magnet and second transducer having an associated permanent magnet. In one embodiment, a magnetic cylinder is positioned between a woofer and a tweeter of a coaxial multi-way loudspeaker. An optional support structure, such as a plastic cylinder, may encompass the permanent magnet to enhance structural characteristics of the assembly. The woofer may include an external ceramic magnet extending around a center pole of the woofer.