Focusrite acquires Martin Audio in £40m deal
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The total consideration to be paid is £39.2m for the business. This will be funded through a combination of existing cash resources and a new loan facility of £40m 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.
Martin Audio will continue to operate from their headquarter offices and factory in High Wycombe, under the leadership of managing director Dominic Harter.
Harter comments: “We are excited by the transaction and what Martin Audio can achieve together with Focusrite. Focusrite is a strong brand in the industry and given the geographic proximity of both our businesses we know the team at Focusrite very well. There is a great deal we can do together and we look forward to working closely to develop the opportunities across both of our businesses."
He adds: "In Focusrite we have an industry neighbour of the finest pedigree; a global leader in its own right. Their culture mirrors our own and, getting to know the team, I sense a strong similarity with the deep-rooted values of our own Martin Audio Family. Focusrite are the perfect partner to help Martin Audio continue the innovations that have driven its success. So it is with great pride and enthusiasm that we take this next step; a momentous occasion as the Martin Audio brand enters its 50th year. Working with Tim [Carroll], Phil [Dudderidge] and the Focusrite team, I look forward to seeing all our staff and the wider family grow together, continuing to bring our unique optimised sonic experience to more and more audiences across the globe.”
Tim Carroll, CEO of Focusrite, comments: "The acquisition of Martin Audio is a clear demonstration of our strategic aim to expand into complementary new markets. Martin Audio is an established brand with solid financials that can instantly add value to the enlarged Group. Just as importantly, the business is culturally aligned with our existing operations. They will have an important role to play as we continue to focus on our goal of enriching lives through music, by removing barriers to creativity; from that first spark of musical inspiration, to delivering an emotionally charged performance on stage. The Martin Audio team share our hunger to innovate and our passion as music and sound enthusiasts. Their close geographical proximity to Focusrite will help significantly in the development of future cross selling and marketing strategies."
Focusrite chairman Phil Dudderidge adds: "Martin Audio is a close neighbour to us in High Wycombe, we have known and admired the Martin Audio group for many years and their current management recognised that Focusrite was a strong strategic fit to help them achieve the next phase of their growth plan. My conviction as to the outstanding performance of the Martin MLA system was cemented at BST Hyde Park concerts in recent years, notably Tom Petty in 2017 and Eric Clapton in 2018."
