Business
Acquisition of Martin Audio Ltd
Acquisition of Martin Audio Ltd.
About this update from Focusrite Plc
[{"type":"text","content":"\n \nRNS Number : 4538X Focusrite PLC 19 December 2019 \n\nStrictly embargoed until 07.00: 19 December 2019\n \nFocusrite plc\n(\"Focusrite\" or \"the Group\")\nAcquisition of Martin Audio Ltd\n(\"Martin Audio\")\n \nFocusrite plc, the global music and audio products company supplying hardware and software used by professional and amateur musicians, today announces the acquisition of Martin Audio and associated companies, the designer and manufacturer of high-performance loudspeaker systems for the touring and installation markets. The total consideration to be paid is £39.2 million for the business, which has approximately £4.0 million of cash. This will be funded through a combination of existing cash resources and a new loan facility of £40 million with HSBC and Natwest. The completion of the loan facility, and hence the completion of the acquisition is dependent upon shareholder approval in a general meeting on 30 December 2019. This is a Substantial Transaction under the AIM Rules. The Board expects the acquisition to be enhancing to earnings per share in the current financial year, excluding non-underlying transaction costs, and thereafter.\n \nFounded in 1971 and also headquartered in High Wycombe, Martin Audio, designs, manufactures and distributes premium professional sound systems across the globe. It employs some 74 people worldwide, with the vast majority based at its head office and co-located manufacturing facilities. In the year to 31 December 2018 Martin Audio's turnover was £21.7 million1, with EBITDA of £2.6 million and EBIT of £2.4 million. Net assets for Martin Audio as at 31 December 2018 were £4.1 million. In the 12 months to October 2019 (unaudited), Martin Audio's turnover was £24.4 million, with an EBITDA of £3.4 million and EBIT of £2.9 million. The deal marks an exit for LDC, the private equity arm of Lloyds Banking Group, who backed the existing management team, led by Dominic Harter, to buyout the firm from global audio specialist Loud Audio in July 2018.\n \nThis is the second substantial acquisition made by Focusrite this calendar year, following the purchase of ADAM Audio GmbH and its associated companies (\"ADAM\") for a total consideration of £16.2 million in July 2019. Following the acquisition of Martin Audio, the ...