Focusrite PLC Acquisition (7130F)
July 16 2019 - 7:00AM
UK Regulatory
TIDMTUNE
RNS Number : 7130F
Focusrite PLC
16 July 2019
Strictly embargoed until 13:00: 16 July 2019
Focusrite plc ("Focusrite" or "the Group")
Acquisition of Pro Audio GmbH including ADAM Audio GmbH
Total consideration of EUR18.0 million to be satisfied in
cash
Focusrite plc, the global music and audio products company
supplying hardware and software products used by professional and
amateur musicians, today announces the acquisition of Pro Audio
GmbH, which comprises ADAM Audio GmbH and its overseas subsidiaries
("ADAM") for a total consideration of EUR18.0 million (GBP16.2
million), to be funded in its entirety by cash from Focusrite's
existing resources. This is a Substantial Transaction under the AIM
Rules. The Board expects the acquisition to be earnings-enhancing
in the first full year of consolidation.
ADAM is a Berlin, Germany based developer and global distributor
of professional studio monitor loudspeakers. In the year to 31
December 2018 (unaudited) ADAM's turnover was EUR12.9 million, with
an adjusted EBITDA of EUR1.7 million and profit before tax of
EUR1.0 million. Net assets for ADAM as at 31 December 2018 were
EUR4.1 million. Following the acquisition Focusrite will have cash
balances of approximately GBP12 million.
The acquisition extends the Group's product offering to
incorporate a comprehensive range of monitors well-aligned to its
existing customer base, reflecting a strong fit with the previously
communicated strategic aims to grow the core customer base, expand
into new markets and increase lifetime value for customers.
ADAM was founded in 1999 and has developed into one of the
world's leading studio monitor companies. The business has earned a
worldwide reputation based on technological innovation and sells
its products directly to retailers in the UK, Germany and US, as
well as to over 75 other countries via distribution partners. It
employs some 60 people worldwide, with offices in Germany, USA and
China. Currently approximately half of the business's revenues are
in Europe, a quarter in the US and the remainder in the ROW.
ADAM places great emphasis on product design and innovation and
is recognised as a leader in the field of Electroacoustics. The
core product range is made up of the recently-launched, more
affordable T-Series for the wider market, the AX-Series, a great
all-rounder for the professional studio set-up, and the flagship
S-Series.
Following the transaction, it is expected that ADAM will
continue to operate autonomously as a subsidiary of Focusrite from
ADAM's headquarters in Berlin and both companies will work together
to maximise the potential cross-selling opportunities for the
businesses and other synergies.
Tim Carroll, Chief Executive Officer, commented:
"This is our first significant acquisition since becoming a
publicly listed company and as previously communicated it was
important that we identified a business that was a good fit for the
Focusrite family of complementary brands. It was also key that the
business we acquired was well-run and met our requirements of being
profitable and cash generative. ADAM satisfies all these criteria
and we believe its world leading product range of high quality
studio monitors will sit well with our own suite of products. Like
us, they have a focus on product design, innovation and development
and I am delighted to welcome all their employees to our Group.
Together we can continue to excite and empower our customers with
world class tools for audio production and recording."
-ends-
Enquiries:
Focusrite plc: +44 1494 836301
Tim Carroll (CEO)
Jeremy Wilson (CFO)
Panmure Gordon (Nominated Adviser and Broker) +44 20 7886 2500
Freddy Crossley / Alina Vaskina
Erik Anderson
Belvedere Communications +44 20 3687 2756
John West
Llew Angus
Transaction advisers to Focusrite plc
Lincoln International as buyside financial adviser,
PricewaterhouseCoopers as financial and tax due diligence provider
and Luther Law (Luther Rechtsanwaltsgesellschaft) as legal
adviser.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Notes to Editors
Focusrite plc is a global music and audio products group that
develops and markets proprietary hardware and software products.
Used by recording professionals and musicians alike, its solutions
facilitate the high-quality production of recorded and live sound.
The Focusrite Group trades under five established brands:
Focusrite, Focusrite Pro, Novation, Ampify and now ADAM Audio.
With a high-quality reputation and a rich heritage spanning
decades, its brands are category leaders in the music-making and
audio recording industries. Focusrite and Focusrite Pro offer audio
interfaces and other products for recording musicians, producers
and professional audio facilities. Novation and Ampify products are
used in the creation of electronic music, from synthesisers and
grooveboxes to industry-shaping controllers and inspirational
music-making apps. ADAM Audio monitors have earned a worldwide
reputation based on technological innovation in the field of
loudspeaker technology. The product portfolio includes its T, AX,
and S Series product ranges, aimed at different levels of musicians
and recording engineers, as well as its subwoofer and headphone
ranges.
The Focusrite Group has a global customer base with a
distribution network covering approximately 160 territories.
Focusrite is headquartered in High Wycombe, UK, with marketing
offices in Los Angeles and Hong Kong. ADAM Audio has offices in
Berlin, Nashville and Dongguan. Focusrite plc is traded on the AIM
market, London Stock Exchange.
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END
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