Epiris has completed the sale of Audiotonix, a leading manufacturer of audio mixing consoles, to Astorg, a leading European private equity firm, having achieved the necessary regulatory approvals.
Electra Private Equity has received proceeds from the sale of GBP203 million, an uplift of GBP62 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 50%.
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 GBP42 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.”
ELTA : Electra sells Audiotonix