LOUD Audio, LLC, now a portfolio company of Transom Capital Group, sold the Martin Audio brand to UK-based mid-market private equity investor LDC. The announcement details that the move was "aimed at allowing LOUD to narrow its focus and deliver the best possible products and experience to its Pro Audio customers." The reality though is that this is one of those déjà-vu situations where manufacturers from the United Kingdom sell their business to foreign investors when the times get rough, only to require the business back when things improve, always with the support of financial backers from the UK, which typically support local businesses and local jobs.
"I've truly enjoyed being able to participate in the legacy of this much-lauded brand," said Mark Graham, CEO of LOUD. "Bringing some of the technical and operational expertise of the LOUD enterprise to Martin Audio and drawing on Martin's fanatical passion around sound quality created a nice marriage of capabilities. While we are sad to see them go, we believe this change will benefit both businesses by allowing for simplicity and focus. We wish the brand and all the Martin employees the very best of luck."
In reality other than distribution synergies, there was never any integration of cooperation from Martin Audio within LOUD or previous owners, with the company having a remarkable history of internal innovation, keeping manufacturing under control, and focus on their core business in the professional audio segments. As Dom Harter, Managing Director of Martin Audio, states, "Our success to date has been underpinned by providing equipment of the utmost quality to help deliver an unforgettable listening experience to people across the globe. The next phase of our journey will benefit from an investment partner like LDC. LDC has demonstrated a shared vision with a focus on developing our product line even further, and ensuring we have a rock-solid infrastructure in place to extend our global reach and drive market share."
LDC (www.ldc.co.uk) is a leading private equity company in the UK, and an arm of Lloyds Banking Group. LDC has committed to invest £1.2bn in UK mid-market businesses over the next three years, after investing over £1bn of equity and generated exit proceeds of more than £2bn in the last three years (2014-16). As part of the deal, LDC has invested 12 million British Pounds for a stake in the company, alongside its current management team led by Managing Director Dom Harter, appointed in March 2016. The investment will enable Martin Audio to further develop its product range, improve its sales and marketing capabilities, extend and support its global distribution network and enhance its digital infrastructure through software development.
Martin Audio now has a turnover of around £20m and employs more than 60 people. The British company is enjoying strong growth on the back of new product releases and continuing success in the touring market with London’s British Summer Time Festival at Hyde Park and Rock in Rio currently deploying record amounts of its flagship system, MLA. As Dom Harter explains, ““The next phase of our journey needs a growth-focused investment partner like LDC and the team has demonstrated a shared vision for the business from the outset."
This also means that LOUD Audio is now mainly Mackie, EAW, and two musical instrument brands. James Oh, Partner at Transom Capital Group, says that "Reducing the complexity of the LOUD business and re-focusing on high quality audio delivery from consumers to professionals has always been the focus of our thesis. We are very happy to have found a great owner for the Martin business and wish everyone involved much success in their pursuits."
In the announcement, Martin and LOUD say they will be working together over the next few months to ensure a smooth transition for all customers, dealers, and distributors.
www.martin-audio.com
