Martin Audio Exit...Stage Left
ISIS Equity Partners ("ISIS") portfolio company, Martin Audio, has been sold to US based LOUD Technologies ("LOUD") in a deal worth £17.25m.
High Wycombe based Martin Audio is a leading manufacturer of loudspeaker systems for the professional audio markets. The business was founded in 1971 to supply world class touring systems for the supergroups of the day that included Pink Floyd and Supertramp. Today, Martin Audio enjoys an international reputation for supplying high quality systems that meet the requirements of every professional audio market sector. Users of Martin Audio systems have included Kylie Minogue, Take That, The Killers, Chris Rea, The Ministry of Sound and the hit musical Sinatra.
The business was backed by ISIS in 2003 in a buy-out from former parent company TC Group A/S. The original deal was led on behalf of ISIS by Shani Zindel and Liz Jones.
Since then the business has consistently delivered profitable growth and exceeded the financial targets set by the shareholders. Operating profit has more than doubled in the period. The business has sales of £15m, employs around 60 people and works closely with more than 40 dedicated distributors, serving countries throughout Europe, the Far East, the USA, Australia and other growing markets around the world.
Martin Robertson managed the investment for ISIS and comments "All areas of the business have made a significant contribution to Martin Audio's overall performance; product innovation has kept Martin Audio at the forefront of technology advances in the professional audio market, the business has invested in sales and marketing, benefits from strong relationships with its distributors, and understands what its customers want. In many cases artists production stipulate that a tour or venue must be equipped with Martin Audio products".
The sale to LOUD yields a multiple of 3.5 and an IRR of 45% to ISIS's clients.
Martin Robertson adds "We have been delighted to have been involved with a business that has built a global reputation for product excellence and has been able to deliver strong returns to shareholders. The commitment to innovation and customer satisfaction is endemic throughout the business".
David Bissett-Powell, Managing Director of Martin Audio commented "Our partnership with ISIS has been a great success and has assisted the Martin Audio team in over-achieving the objectives that we set ourselves at the time of the buy-out. However, we recognise that we need to have access to a wider base of technologies and for this reason have been looking at potential partners for some time. By becoming part of LOUD we immediately have access to further resources, both technical and financial, to assist our team in reaching its next set of goals".
The shareholders of Martin Audio were advised by Pitmans and Livingstone Guarantee. ISIS were also advised by Olswang.
John Hutchinson of Pitmans comments "It is very pleasing to see the success of the management buy-out translated into a successful realisation both for investors and management and further that, in the process, Martin Audio has found a way to maintain its brand integrity and also expand its opportunities in partnership with LOUD".
Simon Cope-Thomson of Livingstone Guarantee comments "Martin Audio is a highly successful pro-audio business with a global brand and a highly motivated management team, which will fit well with LOUD's strategy both from the perspective of their international strategy and their appetite to grow by acquisitions, backed by Sun Capital. The disposal of Martin Audio represents another successful cross border sale by LG".
Published: 12 April, 2007
