Irwin Mitchell Corporate Team Advise Audio Specialists On Deal
Irwin Mitchell’s corporate team has advised the sellers of manufacturer and designer of professional audio equipment Linea Research Holdings on their sale of the company to music products specialist Focusrite plc.
Irwin Mitchell corporate partner Emma Callow, together with Tom Wisniewski advised the individual selling shareholders on the £12.6m deal, which is set to boost Focusrite’s ambitions to grow its core customer base, while giving the firm the assets to expand into new markets.
Established in 2003 by a team of experienced professional audio specialists, Linea Research Holdings has gone on to manufacture a host of products. These include the well-known M Series of amplifiers, plus digital signal processors, audio networking and software.
Two of Linea’s original founders, Davey Smalley and Ben Ver will continue to lead the business as part of the Focusrite team while Paul Williams another of the original founders, will be retiring.
Based in High Wycombe, music product specialist Focusrite plc has continued to expand its operations and the board expects this latest deal to enhance its earnings potential in the current financial year.
Focusrite subsidiary Martin Audio is already a key customer of Linea, whose technology is behind the iKON amplifier series, powering the Wavefront precision line arrays seen at festivals such as British Summer Time in Hyde Park.
Tim Carroll, chief executive of Focusrite plc, said: “It is an absolute pleasure to welcome Davey, Ben and the entire Linea Research team to the Focusrite Group.
“We know the team and the business well given that Martin Audio is a major Linea Research customer. This will lead to many synergies and is expected to improve gross margin for both Martin Audio and the wider Group.
“Linea Research’s products are globally recognised as best in class and we are all excited about the opportunities and possibilities that lie ahead with the collective expertise of the Linea Research and Focusrite Group R&D and sales teams.”
In a joint statement, Davey Smalley and Ben Ver, Directors at Linea Research commented:
“We are delighted to be able to continue the Linea Research success story from within the Focusrite Group.
“Having seen the support and growth of the brands within the Group, we believe this provides us with a secure foundation to further our R&D efforts and product portfolio, strengthening the Linea Research brand while continuing partnerships with our long-standing OEM partners. This can only be a good thing for our customers, end users and very much our staff.”
Expert Opinion“This deal represents a great move for both businesses. As the global economy opens up in a post-COVID world, opportunities are opening up and giving both businesses the scope to develop their offerings to the market. This deal allows for greater cooperation between two of the most successful names in the business and we are delighted to have played a part in facilitating the future of a great UK success story.” Emma Callow - Partner
Irwin Mitchell recently reported that manufacturing deal activity data for 2021 increased compared to the previous 12 months. The law firm has examined Experian’s comprehensive database of corporate transactions and revealed there were 1,457 manufacturing deals completed in the UK during 2021 with a total value of £101.7bn. Out of these completed transactions, 1,253 involved a UK target.