Private equity firm invests in DPA
WORLD: The Riverside Company, a global private equity firm that focuses on acquiring strong and growing businesses, has invested in DPA Microphones. Riverside's investment in DPA will reportedly allow the manufacturer to significantly expand its operation and grow the company at a much faster pace.
‘DPA is already a very successful and profitable company, which has been experiencing a 15 per cent increase in sales, year on year, for the last five years,’ said DPA’s CFO Christian Hoff. ‘With Riverside involved, we anticipate even stronger sales growth in the next five years.’
Riverside has experience in the audio and electronics industry, having previously invested in German loudspeaker company Teufel, which was successfully divested in 2010. More recently Riverside acquired Blue Microphones, a US manufacturer of consumer and performance microphones.
Riverside Partner Thomas Blomqvist noted that Riverside saw DPA as an attractive partner because it has ‘an innovative and well-designed product range’ and ‘an international reputation for delivering outstanding quality and durability’. Mr Blomqvist continued: ‘This is a solid foundation for further growth, and Riverside’s global network and experience in the audio industry should help propel DPA to further success.’
Under the terms of the new deal, DPA’s CEO Christian Poulsen and CFO Christian Hoff have retained their current positions in management and on the board, along with a 40 per cent shareholding. Riverside is now the majority shareholder and will also have representation on the DPA board.
‘For our day to day operation, it is business as usual,’ said Mr Poulsen. ‘What has changed is our ability to capitalise on our current success and make this even more significant in the future. Riverside has an extensive network worldwide, many of whom are specialists in the audio industry and have deep technical knowledge and experience that we can exploit. This investment will allow us to develop new technologies and new products at a much faster pace. It will also allow us to move into new markets and attract more good people to our brand, while still properly supporting our existing customer and partner base.’
Working with Thomas Blomqvist on the transaction for Riverside were vice president Björn Larsson and associate Martin Gustavsson. Principal for origination Lars Eriksson sourced the opportunity for Riverside. L.E.K., KPMG and Gorrissen Federspiel performed commercial, financial and legal due diligence, respectively. Danske Bank provided financing for the transaction. Audon A/S, an M&A International Inc. firm, advised DPA Microphones.