(Alliance News) - Audio products firm Focusrite PLC on Thursday announced the GBP39 million acquisition of neighbour Martin Audio Ltd.
Martin Audio, which was founded in 1971 and is headquartered in High Wycombe, designs, makes and distributes professional sound systems worldwide.
Focusrite also is based in High Wycombe, and following the deal Martin Audio will remain at its current site under the same leadership.
In 2018, Martin Audio delivered revenue of GBP21.7 million, with earnings before interest, tax, depreciation, and amortisation of GBP2.6 million.
Focusrite is paying GBP39.2 million for the business, using both existing cash and a new GBP40 million loan from HSBC Holdings PLC and NatWest, which is part of Royal Bank of Scotland Group PLC.
"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," said Focusrite Chief Executive Tim Carroll.
"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," he continued.
"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."
This is Focusrite's second major acquisition in 2019, it noted, following July's EUR18 million takeover of Pro Audio GmbH, a German studio monitor loudspeaker maker.
Focusrite shares were 2.2% higher on Thursday morning in London at a price of 610.90 pence each.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Focusrite (TUNE)