Transom Capital Group has formed LOUD Audio, LLC and has acquired all the brands of LOUD Technologies (OTC: LTEC), including the Mackie, Ampeg, EAW, and Martin Audio brands. LOUD Audio will be led by the executives of LOUD Technologies.
LOUD engineers, markets and distributes a range of professional audio and musical instrument products including sound reinforcement systems, analog and digital mixers, studio products and guitar and bass amplifiers. A sound reinforcement system is the combination of microphones, signal processors, amplifiers, and loudspeakers in enclosures all controlled by a mixing console that makes live or pre-recorded sounds louder and may also distribute those sounds to a larger or more distant audience.
The company’s products are used in professional and project recording studios, concert tours, sports arenas, houses of worship, retail locations, night clubs, educational facilities and many other applications. LOUD distributes its products primarily through retail dealers, mail order outlets and installed sound contractors. LOUD is headquartered near Seattle in Woodinville, WA and has additional operations in the United Kingdom, Canada and China (www.loudtechinc.com).
“This transaction presents a great opportunity to work with the LOUD team to achieve the next stage of growth for these iconic brands,” said Ty Schultz, Managing Partner of Transom Capital. “These brands are positioned well with major retailers, installers and production companies and bring with them an outstanding legacy of innovation and category-defining product introductions. We have been working closely with LOUD’s leadership to ensure continuity of the supply chain, channel relationships and LOUD’s employee base. We look forward to realizing the compelling growth opportunities for these brands both in the retail and professional audio spaces.”
Transom Capital Group invests in buyouts and turnarounds of companies with EBITDAs from $0 (turnaround situations) to $20 million. Sectors of interest include consumer products, media & entertainment, and industrial. Transom held a final closing of Transom Capital Fund II LP with $133 million of limited partner commitments in June 2016. The new fund was oversubscribed and closed above target. Transom is headquartered in Los Angeles with an additional office in Seattle (www.transomcapital.com).
“This transaction is the first step in a broader strategic plan to enable and grow each of our iconic brands. Our brand and product strategies are greatly enhanced going forward as each will be working from a vastly improved financial structure and with access to growth capital,” said LOUD CEO Mark Graham. “Transom is an exciting partner as they have experience in our industry and a great track record of building brands.”
© 2017 Private Equity Professional | October 17, 2017