Posts Tagged ‘Charles Elkington’

Broadcast Vendor M&A: Electra Partners Buys Calrec Audio for $23.1 Million

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 24 2014

Leading broadcast audio console vendor Calrec Audio has been acquired by Electra Partners, a UK-based private equity firm for $23.1m (£14m) of equity and debt.

This is a relatively low valuation for Calrec Audio, which according to public records made an after-tax profit of $4.73m on revenue of $29.33m for the fiscal year ended March 31 2013.

Calrec’s products are primarily used for sports broadcasts and other live events. Its products are arguably the de-facto standard in the sports truck market, particularly in the United States.  Many broadcasters used the company’s products at the recent Sochi Olympics. For example, NBC Universal used five Calrec Artemis consoles in Sochi. Other Calrec customers include Al Jazeera, the BBC, CBS, Gamecreek, NEP and Sky.

The seller was consumer audio specialist D&M Holdings, which acquired Calrec Audio in 2007 for an undisclosed amount.

This is the second deal between D&M Holdings and Electra Partners in the past year. In June 2013, D&M sold audio specialist Allen & Heath to Electra for £43m. D&M acquired Allen & Heath in 2006 from Growth Capital Partners for £15m.

Part of our investment strategy when investing in Allen & Heath was to acquire additional businesses in the audio sector in order to create a group of market leading professional audio mixing brands,” said of Electra’s Investment Partner Charles Elkington. “We look forward to working with Roger Henderson and his team to continue to invest in developing new products for Calrec’s customers.”

“We are excited to be working with Electra Partners as we continue to develop our business into more international markets,” said Calrec Managing Director Roger Henderson.

Allen & Heath’s existing Chairman Malcolm Miller will work with both companies.

Having now sold both Calrec and Allen & Heath to Electra Partners, D&M Holdings has effectively exited the professional broadcast market.  D&M is best known for its consumer brands, which include Boston Acoustics, Denon, and Marantz.

In 2012 D&M Holdings sold off high-end consumer brand McIntosh Labs to Fine Sounds S.p.A. of Italy.

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Related Content:

Press Release: Electra Partners announces the acquisition of Calrec for £14 million

Press Releases: NBC Olympics’ Production of the 2014 Olympic Winter Games in Sochi to Utilize Five Artemis Consoles Provided

Broadcast Vendor M&A: PE Firm Acquires Allen & Heath Acquired in £43 Million Deal

Electra Partners – Allen & Heath Investment Rationale

D&M Sells McIntosh Labs to Italian High-End Marketer Backed by Private Equity

Press Release (2008):  D&M Holdings Acquires Calrec Audio of UK

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: PE Firm Acquires Allen & Heath Acquired in £43 Million Deal

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jun 24 2013

UK-based private equity firm Electra Partners has acquired Allen & Heath, a manufacturer of audio mixing consoles, for £43 million of equity and debt. Allen & Heath’s management also participated in the deal.

The seller was consumer audio specialist D&M Holdings, which acquired the company in 2006 from Growth Capital Partners for £15m.

D&M Holdings also owns broadcast audio console vendor Calrec Audio, which was not part of the Allen & Heath transaction.

Electra says it expects Allen & Heath’s existing team and distribution networks will remain in place, and that the company should be able to achieve continued organic growth, driven by accelerating new product development and new product launches.

Electra says it will also “look to support the management team in making acquisitions of other professional-audio brands and products.”

“We are very excited about working with Electra Partners and the opportunities it presents for the next phase of Allen & Heath’s growth,” said Allen & Heath Managing Director Glenn Rogers.  “We have an excellent catalogue of existing products and a number of exciting prospects in development. We see opportunity for expansion into new areas and look forward to building Allen & Heath’s long-term future alongside Electra Partners.”

“Allen & Heath is a leader in a niche market with an excellent track record of year-on-year growth,” said Charles Elkington, Investment Partner at Electra Partners. “We believe that the company has a bright future and we will be looking to work with Glenn Rogers and his team to grow the business through further investment in new product development, improved marketing and distribution, and through acquisition.”

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Related Content:

Press Release: Electra Partners Announces the Acquisition of Allen & Heath

Electra Partners – Allen & Heath Investment Rationale

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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