Our Companies
Company
Allen & Heath
Sector
Manufacturing
Location
Falmouth
Status
Realised
Background
Allen & Heath is a leading designer and manufacturer of professional audio mixing equipment. It has a niche market position and a strong track record in developing innovative products. Its core products are mixing consoles for live sound venues, professional DJ mixers and sound controllers for building installations.
Deal Information
Deal size at entry: £8 million
Deal size at exit: £20 million
IRR: 41%
Date of investment: March 2006
Date of exit: April 2008
Sold to: D&M Holdings Inc
Investment rationale and value creation
We backed the secondary MBO of Allen & Heath from 3i because we saw a first rate management team committed to the delivery of the next phase of growth. The business had a strong reputation for innovative product development, a solid market position and a good track record of cash generation. During the time of our investment we worked with management to develop their digital product offering, significantly increase outsource manufacturing, and improve distributor performance. Allen & Heath increased profits by 40% since our investment and their success in the market attracted an unsolicited offer from D&M who were looking for a professional audio brand to complement their portfolio of sound related activities. This was a positive outcome for us and management.
