Latest Riverside Exit Sounds Great
Firm Plans to Sell Danish Company DPA Microphones
The Riverside Company has signed a definitive agreement to sell DPA Microphones (DPA), an Allerød, Denmark-based developer and manufacturer of high-end microphones, to RCF Group (RCF). DPA’s products are trusted by demanding professional users across the world for use in theater, broadcast, live and studio applications. Notable superstar users include Stevie Wonder, Katy Perry, Metallica, Coldplay, Paul McCartney and Céline Dion — broadcasters such as BBC, as well as hit Broadway shows like Les Misérables and Phantom of the Opera.
During Riverside’s investment, DPA’s sales and EBITDA nearly doubled while its product portfolio and distribution network grew significantly. DPA cemented its clear leadership position in small, sophisticated body-worn microphones for professional use.
“Together with the DPA team, we were able to achieve all of our goals for this investment,” said Riverside Partner Karsten Langer. “The company saw considerable expansion of its distribution network and increased sales in a number of key markets. Its microphones are the absolute leader in the high-end pro-audio market, used on every continent and sold world-wide by more than 2,000 dealers.”
Riverside invested in DPA in late 2013, attracted by its compelling brand and high-quality products, in addition to its strong product development capabilities. The firm helped DPA accelerate growth by expanding product offerings like its CORE by DPA technology, a new amplifier technology within its line of miniature lavalier and headset microphones. The team also helped enhance sales and distribution and improved operations by boosting the management team, focusing on sales effectiveness, product development and manufacturing efficiencies.
During its ownership, Riverside brought in CEO Kalle Hvidt Nielsen to lead DPA. Nielsen brought to DPA a wealth of relevant experience, including from his past role as CEO of Bang and Olufsen, the iconic Danish audio brand.
“It has been a pleasure working with the Riverside team and being a part of this great success,” said Nielsen. “I’m proud of the work we’ve accomplished together. Share of sales coming from new products are up from less than 5% to more than 40%, and all major areas in the business have been professionalized and streamlined. Now we look forward to a bright future under new ownership.”
Working with Langer on the investment for Riverside was Vice President Jonathan Roos, Vice President Jeroen Lenssen and Associate Dan Parksjö.
Gorrissen Federspiel and Peter Parmentier provided legal counsel on the transaction for Riverside; Alantra advised on corporate finance. Rautenberg Mortiz & Co served as commercial advisor and PWC provided financial and tax VDD.
RCF Group, with companies and subsidiaries located in USA and Europe, is a leading player in the Pro Audio industry, designing, manufacturing and distributing an extensive range of professional audio solutions in the retail, install and touring market. With a history dating back to 1949, the passion of its 500 employees and the focus on continual technical innovation, RCF Group products and solutions are successful in over 130 countries around the world.
The Riverside Company
The Riverside Company is a global private equity firm focused on making control and non-control investments in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 560 transactions. The firm's international portfolio includes more than 80 companies.