THE DEAL:
The private equity funded management buy-out of Martin Audio, the designer and manufacturer of premium high-performance loudspeaker systems, from global audio specialist Loud Audio. As part of the deal LDC, the private equity arm of Lloyds Banking Group, invested £12m for a significant stake in the company, alongside its current management team led by Managing Director Dom Harter. Headquartered in Buckinghamshire, Martin Audio specialises in the design and manufacture of high performance loudspeaker systems for commercial installations, tours and events across the globe, including London’s British Summertime Festival at Hyde Park, Rock in Rio and the iconic London super-club Ministry of Sound. The investment will enable the business to further develop its product range, improve its sales and marketing capabilities through the extension of its global distribution network, and enhance its digital infrastructure through software development.
OUR ROLE:
We introduced the management team to LDC as a leading mid-market private equity player who could meet the challenges of acquiring a UK business from a US parent. Our role involved steering the management team through the MBO process, including negotiating the quantum and terms of their equity investment alongside LDC, modelling the resultant returns against market custom and reviewing the financial forecasts, along with providing them with a sounding board throughout the process of acquiring the business. Our role also involved us working closely with the management team’s legal advisers.
WHAT OUR CLIENT SAID:
“Our success to date has been underpinned by being a trusted brand providing an unforgettable listening experience and so it was important to us that we could place a similar high level of trust in our advisers. The Cattaneo team assisted us in finding the right deal with the right equity partner and were by our side providing impeccable advice on the challenges that arose as we navigated an unfamiliar process. The deal sets Martin Audio up to focus on further developing our product line and driving global market share.”
Dom Harter, Managing Director, Martin Audio
