Epiris is pleased to announce that it has agreed the sale of Audiotonix, a leading manufacturer of audio mixing consoles, to Astorg, a leading European private equity firm. The transaction is anticipated to close in the first quarter of 2017, subject to regulatory approvals.
Electra Private Equity PLC (“Electra”) is expected to receive proceeds from the sale of £203 million, an uplift of £62 million or 44% and equivalent to an increase in its NAV of 133 pence per share on the valuation of the investment at 30 September 2016. This equates to a return of 4.8x original cost and an IRR of 51%, assuming completion by the end of March.
Audiotonix is the global market leader in the design and manufacture of audio mixing consoles for live events and broadcast sound. Its three premium brands (Allen & Heath, Calrec and DiGiCo) support live sound for a variety of purposes such as concerts, TV broadcasting, theatre shows and major international live events.
Epiris initially invested £42 million on Electra’s behalf in the acquisition of Allen & Heath in 2013. This was followed by the acquisition of Calrec in March 2014 and a merger with DiGiCo in August of that year to form Audiotonix. Epiris had identified both Calrec and DiGiCo as add-on opportunities prior to investing in Allen & Heath. These three transactions have created a market leader with a strong growth profile.
Charles Elkington, Partner at Epiris, said:
“This has been a fantastic deal for Epiris and its investors, and clearly demonstrates our strategy in action.
“Through structured investment across three valuable brands we have created a global market leader with strong growth prospects. When we made the initial investment we had a clear strategy based on M&A, operational improvement and strategic focus. We have delivered this with two add-on acquisitions, a reorganised supply chain, and successful investment in sales and marketing as well as new product development. As a result the business has more than quadrupled earnings since 2013.
“The management team, under James Gordon’s passionate and insightful leadership, is exceptional and we wish them all the best for the future.”
James Gordon, CEO of Audiotonix, said:
“Epiris have been an extremely supportive and engaged partner. Their vision and leadership in combining the three businesses and subsequent contribution to the evolution of the group has been invaluable. We now have a solid foundation from which to push into the next stage of our development.”
Charles Elkington and Ian Wood are responsible for the investment and the exit of Audiotonix. Robert W. Baird advised on the sale with Taylor Wessing providing legal advice.
Epiris refers to Epiris Managers LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor, Matthew Goodman, Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Nicholas Board and Andrew Kenny, Epiris
+44 (0)20 7306 3902
This is not an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or an exemption from registration. Any investment in any Epiris fund shall be qualified in its entirety by the terms and conditions of that fund’s offering materials including any prospectus.
Note to Editors:
Epiris is a top-decile private equity fund manager*.
Epiris, together with its predecessor firms, has managed the business and affairs of Electra Private Equity PLC, a listed private equity investment trust, for four decades. Epiris has also managed private equity investment programmes for pension funds, financial institutions and family offices. During this time Epiris has invested in excess of £5 billion in over 200 deals. As at 30 September 2016, the firm had funds under management of £2.4 billion.
Epiris’ flexible investment strategy has allowed it to invest broadly across the private equity market, including in buyouts and co-investments, secondaries and debt assets.
In respect of buyouts and co-investments and loan-to-own debt investments made since 2011, Epiris has delivered a gross IRR of 37%**.
For further information please visit www.epiris.co.uk.
Issued by Epiris Managers LLP which is authorised and regulated by the Financial Conduct Authority.
* Refers to the 2009 and 2012 investment pools comprising Buyout & Co-investment, Secondary and Debt investments managed on behalf of Electra Private Equity PLC; comparator data supplied by Preqin.
** As at 30 September 2016 adjusted for subsequent investments and realisations. Gross IRR does not reflect adjustments for investment management and administration costs. Past performance is no guarantee of future results.
Astorg is a European private equity firm with total funds under management of over €4 billion. Astorg seeks to partner with entrepreneurial management teams to acquire European companies and create value through the provision of strategic guidance, experienced governance and adequate capital. Astorg enjoys a distinct entrepreneurial culture, a long-term shareholder perspective, and a lean decision-making body enhancing its reactivity. Though not specialized, Astorg has gathered a valuable industry expertise in healthcare, business-to-business professional services, and technology-based industrial companies. Astorg has offices in London, Paris and Luxembourg, plus Senior Advisors based in Zurich and Frankfurt.
For further information about Astorg, please visit www.astorg.com