LONDON — In a deal requiring 18 months of preparation and pooled resources from Electra Partners and, to a lesser extent, ISIS, three U.K.-based audio brands are coming together: DiGiCo, Allen & Heath and Calrec. DiGiCo’s managing director, James Gordon, has been named Group CEO. Malcolm Miller, chairman of Allen & Heath and Calrec, becomes chairman for the group.
More details from DiGiCo (www.digico.biz):
The DiGiCo team has spent the last 18 months consulting with Electra Partners about the possible combination of both Allen & Heath and Calrec with the DiGiCo family. The culmination of this brings together three British console companies to create a new professional audio group, while retaining their unique skills, customer relationships and the identities of each brand.
James Gordon will become Group CEO supported by a strong and talented management from across the new group. When asked about what this means for the future, James said:
“We have bold plans for the group but it is imperative that each company maintains its own independence and style. None of these brands needs to trade off each other’s technology or reputation.”
“These are three great companies and all the brands currently in the group have enviable reputations for technology, audio quality, reliability and perhaps, most importantly, customer focus and care. The strategy is to share technology and resource across the group and allow some interconnectivity across the product lines.”
“The combined R&D teams are about to enter a new world of possibilities and we intend to take full advantage of their resource, passion and experience. It’s an amazing opportunity for us, and just maybe the whole British Pro Audio industry.”
Glenn Rogers, Managing Director of Allen & Heath, added, “The creation of the group with DiGiCo and their management is an impressive combination. It will certainly add new momentum to what Allen & Heath and Calrec had already planned for the future.”
Henry Goodman, Calrec’s Sales and Marketing Director, commented that “This exciting formation gives Calrec new opportunities for swifter development of a host of ideas we have been wanting to bring to the market. We will have a vast pool of engineers to share new ideas for the industry and target them specifically to each brand’s needs. Customers can expect us to maintain and in some areas improve our very high levels of support and service.”
The complexity of this combination required the effort and support of two of London’s top Private Equity houses. For the first time, Electra Partners and ISIS have pooled resources to support the management with this ambitious vision for the future of UK Pro Audio. Charles Elkington, Investment Partner at Electra Partners, said:
“DiGiCo augments our existing investment in the professional audio sector. We have worked hard over the last 18 months to bring together these three successful businesses. We look forward to working with James Gordon and his team to grow the group, while also preserving the distinctive brand identity and excellent customer relationships of each business.”
More details from Electra Partners (www.electrapartners.com):
Electra Partners announce its investment in DiGiCo and formation of a new professional audio group
Electra Partners is pleased to announce its investment in professional audio mixing console manufacturer DiGiCo. This transaction complements the products sold under Electra’s existing brands, Allen & Heath and Calrec, and forms a new professional audio group. This investment sees the partial exit of ISIS Equity Partners, which has retained a minority stake in the new deal. The debt facilities for the group are being provided by Babson, Bank of Ireland and HSBC.
Headquartered in Chessington, Surrey, DiGiCo designs and manufactures premium digital audio mixing consoles for live sound, theatre productions and broadcast applications as well as supplying interfacing for post-production and recording studios. The innovation and quality in DiGiCo’s products means that they are used in some of the most demanding audio environments such as major international tours, the most recent World Cup and Olympics and the Grammys.
The combination will create one of the most dynamic groups in the professional audio industry, while still retaining the unique skills, customer relationships and identities of each brand. DiGiCo’s CEO, James Gordon, steps up to the new role of group CEO and will work alongside Malcolm Miller, the current Chairman of Allen & Heath and Calrec, who now becomes Chairman for the group.
Alex Fortescue, Chief Investment Partner at Electra Partners, said: “We are delighted to announce our investment in DiGiCo which will complement our existing brands in the professional audio market. Electra has a long track record of supporting international growth in our portfolio and the group now has three strong brands which sell and support their products in over 100 countries. The creation of the group has been enabled by our flexible investment strategy, which allowed us to provide all of the financing for the first two acquisitions.”
Charles Elkington, Investment Partner at Electra Partners, said:
“DiGiCo augments our existing investment in the professional audio sector. We have worked hard over the last 18 months to bring together these three successful businesses. We look forward to working with James Gordon and his team to grow the group, while also preserving the distinctive brand identity and excellent customer relationships of each business.”
James Gordon, CEO of DiGiCo said: “I am very excited to be leading this group of great companies and brands. There is a terrific opportunity to develop innovative new products using the creativity and experience of our combined R&D teams and I look forward to working with Electra Partners to grow the businesses.”
Charles Elkington, Ian Wood and Shakira Adigun-Boaye are responsible for the investments in Allen & Heath, Calrec and DiGiCo. Charles and Ian will represent Electra Partners on the Board of the company.
The Aug. 1, 2014 announcement continues a busy 2014 for Electra, following the £84 million investment in Hotter Shoes, the £82 million investment in Ogier Fiduciary Services, the £33 million co-investment in Innovia Group and the further investments in CALA Group and Treetops Nurseries. In the six months to 31 March 2014, Electra Partners announced a record six month period for investment, investing or committing £250 million, building on record levels of investments and realisations in the year to 30 September 2013.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
