THE DEAL:
The sale of Linea Research to Focusrite plc (AIM: TUNE) for £12.6 million. Linea designs, manufactures and markets innovative professional audio equipment. Its products, which are sold globally, comprise a range of ground-breaking amplifiers, including the world-renowned M Series, together with Digital Signal Processors, audio networking and software products. Focusrite is a global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry with a stable of brands including Focusrite Pro, Martin Audio, ADAM Audio, Ampify Music and Sequential.
OUR ROLE:
We started working with Linea prior to the Covid pandemic and then, with the global lockdown affecting indoor and outdoor entertainment venues, it was a matter of preparing for a sale once global markets showed signs of sustained recovery. Focusrite’s strategy was to strengthen its critical source of supply of amplifier modules for its Martin Audio business and to enable greater integration of loudspeaker and amplifier technology in its products. Consequently, with Linea’s trading recovering strongly through 2021 into 2022, we were able to negotiate a deal which met the individual requirements of our clients. Of the four founder shareholders, two were seeking to exit while the other two continue to lead the business under Focusrite. The in-depth knowledge of our clients’ business that we gained during the pre-sale preparation phase allowed us to provide full support to the shareholders through the sale process, managing a tight due diligence and legal process to facilitate completion of the transaction within the timescale originally set.
WHAT OUR CLIENT SAID:
“We knew of Cattaneo from their work on the MBO of Martin Audio and that relationship meant that our objectives for a sale could be communicated clearly to Focusrite to cut through the fog created by Covid. Their in-depth understanding of our business and its fit with the buyer meant that they were able to provide us with the support and assistance we needed though the process – without Cattaneo it would have been a real challenge for us.”
Davey Smalley, Director, Linea Research
