The Riverside Company has acquired Blue Microphones, a manufacturer of consumer and professional microphones and recording tools, from Transom Capital.
“Blue Microphones is favored by pros and consumers alike,” said Riverside Managing Partner Loren Schlachet. “Their products are outstanding, and meet a range of requirements for end users needing virtually any type of microphone. We’re really excited to invest in this company.”
Blue Microphones designs and produces microphones, recording tools, signal processors, and music accessories for audio professionals, musicians and consumers. Along with studio microphones, Blue sells a line of consumer USB microphones, such as the Yeti – the first THX certified microphone, and Mikey – the first High Definition microphone designed for use with the iPod. The company was founded in 1995 by Skipper Wise, a musician, and Martins Saulespurens, a recording engineer. Transom acquired Blue from the founders in April 2008. Blue Microphones is headquartered in Westlake Village, CA (www.bluemic.com).
Riverside plans to help the company expand globally while deepening its share in all markets, in addition to developing new products. According to Riverside, Blue is poised for steady growth in the global digital microphone market, driven by Skype and consumer-created media.
“Blue has achieved rapid growth in revenue and market share, and we expect to be able to accelerate that growth,” said Riverside Principal Brian Sauer. “The company has a solid management team and a track record of quality and innovation. We’re looking forward to recording the next chapter in their successful history.”
The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 311 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 75 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
“Over the past five years, Blue Microphones has launched a whirlwind of innovative new products and expanded distribution globally,” said Blue Microphones CEO John Maier. “Looking forward, Riverside is the ideal partner for Blue to achieve our ambitious expansion goals, both internationally and into new market segments, and I could not be happier to be joining such an accomplished team.”
Working with Mr. Schlachet and Mr. Sauer on the transaction for Riverside were Associate Elaine Ho and Operating Executive – Finance Kim Katzenberger. Jeremy Holland, Regional Director – Origination, sourced the transaction for Riverside. Brian Bunker, Operating Partner and Managing Director, assisted with due diligence on the transaction.
US Bank provided the financing and Jones Day and Deloitte advised Riverside on the investment. Intrepid Investment Bankers advised Transom Capital and Blue Microphones.
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-23-13
