AUDIO & ACOUSTICS MERGERS & ACQUISITIONS UPDATE | JULY 2021 - THE SENSE OF SOUND
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
AUDIO & ACOUSTICS MERGERS & ACQUISITIONS
UPDATE | JULY 2021
THE SENSE OF SOUND
3
TABLE OF CONTENTS
Industry Takeaways 3
Resilient Earnings 4
Divergent COVID Impact 5
M&A Rebound 6
Acquirer Investment Strategies 8
Active Private Equity Buyers 9
Robust Valuations 10
Structural Growth Drivers 12
Protected Market Niches 13
Attractive Financial Characteristics 14
Continued M&A Activity 15
Recent Transactions 16
Audio & Acoustics Team & Track Record 18
Contact Our Audio & Acoustics
Industry Experts
Ian Cookson
Managing Director
617-470-9338
icookson@capstonepartners.com
Hilary Morrison
Vice President
917-763-0121
hmorrison@capstonepartners.com
AUDIO & ACOUSTICS M&A UPDATE
The Sense of Sound
INDUSTRY TAKEAWAYS
This past year has seen us plugged-in and communicating digitally more than ever before, with the pandemic
accelerating underlying structural, technological, and behavioral shifts. We return now to public places more
attuned to comfort and sensitive to our surroundings, including a greater appreciation of sound and space.
• Home: Electronic communication became a lifeline for work and play, with technologies facilitating the
lockdown lifestyle.
• Away: Awareness of human safety and sensitivity has become more ingrained. People likely return to
public environments expecting those spaces reflect increased consciousness of noise and proximity.
Through our work with industry players and analysis of trends during COVID-19, we identify the takeaways
below. An in-depth overview of industry dynamics and merger and acquisition (M&A) activities appear on the
pages which follow.
1. EBITDA earnings are expected to surge 30% in 2021 – for sector public companies, after a flat 2020.
2. M&A activity rebounds – with 2021 transaction activity exceeding pre-covid levels, after the Q2 2020
covid pause.
3. Serial acquirers continue – as strategic buyers target growth in product adjacencies and private
equity pursue consolidation plays.
4. Valuations remain strong – with sector participants having attractive financial characteristics, serving
protected niches.
5. Underpinned by structural growth drivers – managing sound is increasingly important in our daily
lives: both to communicate and entertain us, while also protecting us as the environments we live and
work in get ever louder and less comfortable.
6. Transaction attractions for both sellers and buyers – are likely to fuel continued M&A activity.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity
firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.
To learn more about Capstone’s wide range of advisory services and Audio & Acoustics Industry expertise,
please contact Capstone Managing Director Ian Cookson.
3
Audio & Acoustics | July 2021
RESILIENT EARNINGS
While hearing is a sense not associated with being affected by covid, the
Each subsector is expected
same cannot be said of the Audio & Acoustics industry, with market
to significantly exceed pre-
segments impacted in very different ways. In retrospect, EBITDA earnings
covid earnings in 2021, with
for our respective public company subsectors performed through the
30% growth in EBITDA
pandemic as might be expected, although things were far from clear at
projected after a flat 2020.
the time.
• There were many surprises, with change being one of the few constants, as players sought to find new
applications, modify solutions for the reshaped environment, and respond with constricted supply
chains to source winning products.
• Overall EBITDA of public companies in our Audio & Acoustics index held up, falling only 1% in 2020.
The subsegment of Sound Management (including consumer audio) was the biggest winner and
Communication Systems (including office equipment) was the hardest hit.
• Looking forward, each of the subsectors are expected to collectively exceed pre-covid EBITDA
earnings in 2021, with a 30% EBITDA increase in analyst consensus forecasts of the compiled public
companies.
• Communication Systems are expected to show the biggest rebound as companies look to a ‘work
from anywhere’ (or work from more than one place) environment.
• It is not lost on participants that sound is more distracting in quieter environments, as students using
libraries prior to final exams can attest. As work environments are reshaped, reenvisaged, and
remodeled, sound characteristics can be an important part of that redesign.
Public Company Earnings by Subsector
EBITDA Percentage Change 2020 Actual 2021 Forecast
Sound Management (includes Consumer Audio) +5% +26%
Communication Systems (includes Office Communications) -10% +53%
Hearing Protection (includes Personal Protection) -4% +10%
Sound Absorption Materials (includes Construction) -1% +21%
Total (Weighted by Market Size) -1% +30%
Source: Capital IQ
Acoustics Earnings by Sector
Sound Management Communication Systems
Hearing Protection Sound Absorption Materials
400%
Percentage Change
300%
200%
100%
0%
Source: Capital IQ and Analyst Consensus Estimates
4
Audio & Acoustics | July 2021
DIVERGENT COVID IMPACT
• Sound Management, which includes consumer audio showed a 5%
increase in public company earnings in 2020 benefiting from elevated Sound is actually
consumer spending on products for the home. This disguises many
winners and losers, even among different product lines within the same
more distracting
company. In music for example, products used for home production, in quieter
hobbies, and entertainment benefitted greatly, while those used in live environments.
venues suffered. Products which enable streaming (such as
microphones, video, and mixing systems) as well as gaming saw As workplaces are
increases buoyed by both a structural shift toward social media sharing,
as well as a covid bump. Strong 26% EBITDA growth is expected by
reshaped, sound
analysts in 2021. characteristics
can be an
• Communication Systems, which includes office communications important part of
showed a 10% EBITDA decline in 2020, with fewer workers in the office that redesign.
being partially offset by bright spots such as setting up home office
communication systems and adding video capabilities. Strong 53%
uplift is expected in 2021 with adoption of a ‘work from anywhere’ or
‘work from multiple places’ environment: as workers return to the office
at least partially and new offerings are added, fueled by COVID-induced
product and lifestyle innovations.
• Hearing Protection, which includes personal protection including for
work environments showed a 4% EBITDA decline, with a reduction/
slowdown or temporary closure of many loud workplaces during the
pandemic. Albeit, many were deemed essential, particularly in defense-
related areas and players also benefitted by satisfying other PPE
(personal protective equipment) needs. A 10% EBITDA increase is
projected in 2021 as more normal production environments return.
• Sound Absorption Materials, are related most heavily to commercial
construction and showed a 1% decline in EBITDA earnings. Commercial
construction suffered from work stoppages but resumed quickly and
residential markets showed strong growth. Analysts expect a 21%
increase in earnings this year.
• Hearing Healthcare, was also adversely affected by the Pandemic, with
many audiologist offices closed and hearing aid sales down as potential
customers stayed home. Fewer in-person interactions also meant
reduced need, and fewer demands for hearing solutions by frustrated
family and friends.
5
Audio & Acoustics | July 2021
M&A REBOUND
Audio & Acoustics M&A activity declined 10% in 2020, broadly in
line with a 13% decline across North America for all industries. M&A activity has rebounded
Looking at the number of transactions by quarter provides a with 2021 exceeding pre-
clearer picture with most of the shortfall resulting from M&A COVID levels, after a pause
activity almost ceasing during initial lockdown in Q2. By Q4 2020
and Q1 2021, M&A surpassed prior year levels.
in Q2 2020.
Sector Transactions by Subsegment
Mitigation Communication
70
Number of Transactions
60
50
40 35 43 33
36 47
30 31
20 31
20 15 28
19 16
10 21 18 19 22
14 13 15 11 14
7 7 8
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H21
Transactions by Quarter
Acoustic M&A Transactions North American M&A Transactions
150% 125%
100%
Percentage Change
60%
Year-Over-Year
50% 20% 14%
7% 6% 7%
0%
-3% -7%
-50% -16%
-47%-40%
-100%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Source: Capital IQ
Audio & Acoustics has seen a significant increase in the number of transactions since 2013 with:
• Strategic players pursuing both technology and product acquisitions to round out systems and
expand offerings.
• Private equity attracted to the sector by growth, favorable financial characteristics, and the potential to
pursue their favored consolidation strategies.
For transactions since the start of 2020 broadly:
• Two thirds of transactions have been communication and one third sound mitigation.
• Two thirds of sellers have been business founders, with corporations, public company and private
equity making up the balance.
6
Audio & Acoustics | July 2021
M&A REBOUND (CONTINUED)
Acquisitions by private equity were somewhat fewer since the start of 2020, accounting for around a third of
transactions (34%). Of those over two thirds (72%) were add-on acquisitions to existing platform companies
as they pursue buy-and-build sector consolidation strategies, also benefiting from multiple arbitrage of
buying smaller companies at lower valuations and combining them to sell at a higher multiple awarded to
larger businesses.
Audio & Acoustics Transactions by Buyer Type
Public Company Private Company Financial
70
60
Number of Transactions
50 18
14 26 14
18
40 14
16 14
30 23 10
11 19 24
6 6 18 13 25
20 8 6 15
9 16
11 26
10 20 18 17
11 15 14 15 11
6 6 10
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H21
Source: Capital IQ
Audio & Acoustics Sellers by Ownership Type
11%
15%
Public Company
Corporations
Founders
58% 15%
Financial
Source: Capital IQ
7
Audio & Acoustics | July 2021
ACQUIRER INVESTMENT STRATEGIES
Sector Serial Acquirers have Continued their Acquisition Strategies:
• Strategic players have been seeking growth, targeting product Serial sector
adjacencies and expanding technologies – including in
acquirers have
automotive, interactive wearable technology, and greater
design offerings. continued their
• Private equity-backed company efforts have typically ongoing acquisition
continued consolidation - building scale by adding similar strategies, with
products and services to existing platform investments. strategic players
targeting product
Strategic Players: adjacencies and
• Communication (automotive): Harman International Industries private equity
(owned by Samsung Electronics) demonstrated speaker firms pursuing
businesses’ continued expansion in to automotive, acquiring in
Automotive Technologies. consolidation plays.
• Communication (consumer health): Bose Corporation
demonstrated ongoing interest in interactive wearables growth,
with venture investment funding in Wearables Health & Hearing
Technology businesses.
• Mitigation (building products): Armstrong World Industries
(NYSE:AI) expanded its design and aesthetics capabilities with
acquisitions in Acoustic Design & Ceiling Products.
Private Equity-Backed Participants:
• Communication (production): Live production and technology
integration business Solotech, backed by Claridge, Desjardin
and Investissement Québec, made five acquisitions since the
start of 2020 consolidating its venue installation and
technology businesses both on-line and positioning for a
return to live shows.
• Communication (automotive): Charlesbank Capital-owned
speaker business DEI/Sound United which now comprises eight
brands including Polk Audio, acquired Bowers & Wilkins to
expand their position in the Automotive market.
• Communication (office): Highlander Partners-owned
professional AV equipment business Biamp Systems,
continued broadening its product offerings and geographic
footprint, adding two European Meeting Controls and Wireless
Technology business.
• Communication & Mitigation: Ardian made an add-on
acquisition for sound reproduction business d&b audiotechnik.
It also entered the sound mitigation market through the
acquisition of Construction Services & Acoustical Ceilings
platform business Acousti Engineering Company of Florida.
• Mitigation (materials): The Stephens Group continued its
expansion adding two more Acoustics Materials businesses to
its platform now comprising seven operations which has been
renamed as Catalyst Acoustics Group.
8
Audio & Acoustics | July 2021
ACTIVE PRIVATE EQUITY BUYERS
Private equity players continue to be active acquirers with capital
seeking investment at a record high of ~$1,300 billion which more Private equity capital
than doubles to over $3,000 billion of purchasing power when seeking investment reaches
combined with typical acquisition debt. Private equity fund raising record highs yet again,
in Q1 2021 again reached new peaks on top of an additional $370 although the impact is
billion in capital raised in 2020 which broke records for uninvested
more nuanced.
capital despite being down 30%.
This picture, however, disguises that much of the capital has been attracted by mega sized funds, who are
chasing and pushing up valuation multiples on the largest transactions. Fund raising by smaller funds has not
grown at anything like the same rate, and successful smaller players have been moving upmarket. For sellers
on smaller transactions, this means less well-known buyer names and family offices are often filling the void.
$3,000 Private Capital Overhang
2020
$2,500
Overhang by Vintage
2019
U.S. Dollars in Billions
$2,000
2018
$1,500 2017
2016
$1,000
2015
$500 2014
2013
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: Pitchbook as of September 2020
Private Equity Fund Sizes
Top quartile Median Bottom quartile Average
$1,000
$900
$800
U.S. Dollars in Millions
$700
$600
$500
$400
$300
$200
$100
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Source: Pitchbook as of March 2021
9
Audio & Acoustics | July 2021
ROBUST VALUATIONS
In sector M&A transactions with disclosed multiples, which typically
tend to be acquisitions by public companies stated on an Valuations remain strong
unadjusted basis, valuations can be broadly summarized as taking
place with enterprise values around:
with M&A outcomes
affected by company
• 8.6x EBITDA on transactions under $50 million. specific factors.
• 9.8x EBITDA on transactions valued between $50-100 million.
• 10.1x/10.2x EBITDA on transactions between $100-$500 million.
• 11.2x EBITDA on transactions over $500 million.
Average Audio & Acoustics Multiple by Transaction Size
14.0x
12.0x 11.2x
Average EV?EBITDA
9.8x 10.1x 10.2x
10.0x 8.6x
8.0x
6.0x
4.0x
2.0x
0.0x
$500m
Source: Capital IQ and Capstone Partners research
This compares with a larger sample of acquisitions by private equity buyers across multiple industries, where
valuations can be summarized on an adjusted basis, with enterprise values around:
• 6.0x EBITDA for transactions $10-25 million in size (compared to 5.4x 10 years ago).
• 6.8x EBITDA for transactions in $25-50 million (6.1x 10 years ago).
• 8.1x EBITDA for transactions between $50-100 million (7.0x 10 years ago).
• 8.9x EBITDA for transactions between $100-250m (7.4x 10 years ago).
Transaction multiples paid by private equity, as recorded by GF Data, have increased by around 1x turn of
EBITDA over the past decade (average three years to 2020 vs. 2010), with larger transactions showing the
greatest increase.
Average Private Equity Multiple by Transaction Size, 2018-2020
12.0x
10.0x 8.9x
Average EV/EBITDA
8.1x
8.0x 6.8x
6.0x
6.0x
4.0x
2.0x
0.0x
$10-$25m $25-$50m $50-$100m $100-$250m
Source: GF Data
10Audio & Acoustics | July 2021
ROBUST VALUATIONS (CONTINUED)
Like other private company transactions, factors impacting valuation include:
• Market: size, growth, consolidation potential, drivers/underpinning (cyclicality or fad vs.
structural change).
• Products: proprietary abilities and IP (intellectual property) protections vs. commodities (i.e. active
electronic vs passive materials).
• Company: scalability, management ability and depth.
• Financial characteristics: growth rate, profitability, company size.
Valuations in public markets have increased with the sector trading at median enterprise values around 12.5x
EBITDA. By subsector, companies are trading in public equity markets at the following median enterprise value
multiples:
• Sound Management (includes Consumer Audio) – 12.8x EBITDA.
• Communication Systems (includes Office Communications) – 12.8x EBITDA.
• Hearing Protection (includes Personal Protection) – 15.5x EBITDA.
• Sound Absorption Materials (includes Construction) – 10.5x EBITDA reflecting lower multiples attributed
to perceived increases in cyclical construction project related businesses.
Median Public Company Valuations by Subsector as of June 2021
20.0x
15.5x
15.0x 12.8x 12.8x
10.5x
EBITDA
10.0x
5.0x
0.0x
Sound Management Communication Systems Hearing Protection Sound Absorption Materials
Source: Capital IQ and Capstone Partners research
11Audio & Acoustics | July 2021
STRUCTURAL GROWTH DRIVERS
Sound & Communication Systems Sound Mitigation & Protection
Growth drivers: Growth drivers:
• Lifestyle • Comfort of environment
• Technological advances • Regulatory requirements (health,
Includes sound: privacy)
Includes sound:
• Communication: hardware, software
• Delivery: headsets, speakers, • Absorption materials
controllers • Hearing protection
• Installation: equipment, integration, • Interference reduction and
service management
Trends of: Trends of return to:
• Work from anywhere • Shared flexible workplaces
• Wireless, streaming, cloud connected • Louder environments
• Audiovisual, self-production • Increased noise pollution
• Smart: speech interactive, hearables & • Greater human density
wearables • Use of sound reverberating materials
• Personal and shared (hard surfaces - wood, glass, etc.)
• Hearing challenges • Increased power
Long-Term Context
The Management of Sound is becoming increasingly important in our daily lives, both to
communicate and entertain us, while also protecting us as the environments we live and work in
get ever louder and less comfortable over the long term.
• Everywhere: Electronic communication has become ubiquitous, while noise overload
makes our spaces less comfortable, more distracting and sometimes harmful.
• Every purpose: Sound management for personal and mass communication are used for
work and play, from in our ears to transportation vehicles and our workplaces to war zones.
• Ever-increasing: Growth is a function of technological developments; lifestyle changes;
louder environments with increased noise pollution; and regulatory requirements.
12Audio & Acoustics | July 2021
PROTECTED MARKET NICHES
The sound management market has shown strong long-term
growth: expectations are for that to continue with an underlying
growth rate around 5% per year and a market size estimated at The Sound Management
around $50 billion globally. market has shown strong
long-term growth,
The market can be viewed indicatively as:
supported by underlying
• Across a breadth of locations including: Buildings & Office; structural drivers.
Transportation & Vehicles, Individual & Home Audio.
• Commercial and Consumer markets being fairly
evenly split.
• Commercial market being equally balanced between
Communication Systems and Sound Mitigation.
Market Breakdown by Segment
Consumer
27%
Commercial
43%
Mitigation
Commercial
Communication
30%
Source: Capital IQ and Capstone Partners research
Total Indicative Size by Market
Communication Mitigation Total
Commercial $12bn @ 6% $14bn @ 5% $26bn @ 5%
Consumer $20bn @ 5% - $20bn @ 5%
Total $32bn @ 6% $14bn @ 5% $46bn @ 5-6%
Building & Office $7bn @ 7%¹ $9bn @ 5%² $16bn @ 6%
Transport $5bn @ 4%⁴ $3bn @ 4%² $8bn @ 4%
Individual $10bn @ 6%⁵ $2bn @ 8%³ $12bn @ 6%
Home Audio $10bn @ 5%⁶ - $10bn @ 5%
Total $32bn @ 6% $14bn @ 5% $46bn @ 5-6%
Source: ¹ Poly, Arizrton Advisory & Intelligence; ² Global Market Insights, Grand View Research; ³ Persistence
Market Research, Transparency Market Research; ⁴ The Insight Partners; ⁵ Grand View Research; ⁶ Statistica
13Audio & Acoustics | July 2021
ATTRACTIVE FINANCIAL CHARACTERISTICS
Growth & increasing profitability: Audio & Acoustics public
sector companies have shown 7% EBITDA CAGR for the ten 7% annual EBITDA earnings
years ending 2021, on the back of increased profitability as growth by sector public
EBITDA margins have almost doubled over the period. companies for the last ten
Strong cash generation: With minimal capital requirements,
years, on the back of
sector companies are able to finance rapid growth from increasing profitability.
internally generated funds, since net working capital and capex
needs combined as a % of sales, are broadly equal to EBITDA
margin %.
Audio & Acoustics Public Company EBITDA and EBITDA Margin
Acoustics EBITDA Acoustics EBITDA Margin
$16,000 19%
$14,000 17%
EBITDA (U.S. Dollars in Millions)
$12,000
15%
EBITDA Margin
$10,000
13%
$8,000
11%
$6,000
9%
$4,000
$2,000 7%
$0 5%
Source: Capital IQ and Capstone Partners research
EBITDA Compound Annual Growth Rate: 10 Year to 2021
9.6% 4.2% 5.3% 6.7% 7.2%
Sound Communication Hearing Sound Absorption Total
Management Systems Protection Materials CAGR
Source: Capital IQ and Capstone Partners research
14Audio & Acoustics | July 2021
CONTINUED M&A ACTIVITY
We expected Audio & Acoustic sector M&A activity to
continue as: Transaction attractions for
both sellers and buyers are
Business founders become more attuned to the idea of
selling: likely to fuel continued M&A
• Their attention being attracted by improved earnings, activity.
strong valuations, and buyer activity.
• Following a year of likely personal challenge and reflection.
Buyer confidence is supported by robust acquisition
strategies and improving earning as:
• Strategic buyers continue seeking opportunities to fill
product gaps and add new technologies to their offerings.
• Private equity becomes more aware of growth and
consolidation opportunities in the sector.
15Audio & Acoustics | July 2021
RECENT TRANSACTIONS
Communications Systems
Date Target/Issuer Business Description (Target/Issuer) Acquirer (Ultimate Parent)
01/28/20 Tukans Limited Distributes audio visual products. CUK Audio
02/3/20 Audio Visual Material Ltd Distributes audio visual products. Northamber
02/3/20 Video Corporation of America Comprises audio video and collaboration services business. York-VCA, LLC
02/5/20 AVI-SPL, Inc. Integrator of audio-visual and collaboration solutions. Audio Fidelity (Marlin)
02/10/20 Herman ProAV, Inc. Distribution of audio-visual products. Ademco Distribution, Inc.
02/11/20 Huddle Room Technology Develops solutions for wireless meetings. Biamp (Highlander)
02/20/20 Artistic Video and Sound, Inc. Installation of home automation, audio & video equipment. Private Investor
03/4/20 Pro Sound Installs audio/video systems. Solotech (Desjardin)
06/18/20 Nevicom SA Operates as a audio-visual integrator. Videlio SA (ENXTPA:VDLO)
06/29/20 Televic N.V. Installs communication products and solutions. GIMV NV (ENXTBR:GIMB)
07/17/20 Comtec Telecom and Data Provides telecommunication, data, and network services. ETC Group (Carlyle)
08/20/20 Eighth Day Sound Systems Offers audio equipment and live sound coverage services. Clair Global Corporation
10/1/20 Miami Stagecraft Performance, lighting sales and integration company. Solotech (Desjardin)
10/21/20 Thomas Audio Video, Inc. Offers audio and video systems installation services. Connect
11/3/20 Lexter Ljuddesign AB Operates as a sound design company. Effekt I Varberg Ab
11/16/20 Zenitel NV (ENXTBR:ZENT) Provides communication solutions. House of Thor BV
12/1/20 Mood Media Corporation Provides in-store media solutions. Vector Capital
12/3/20 CLS Technology, Inc. Provides sound reinforcement systems. ADT Inc. (NYSE:ADT)
12/11/20 Audio Video Warehouse Comprises audio, video products distribution. DEDC, Inc.
01/13/21 L.P. Hench Company, Inc. Distributes audio-video products. LK & Associates, Inc.
01/22/21 VIDELIO - Funa GmbH Audio-visual systems integrator. Videlio SA (ENXTPA:VDLO)
01/25/21 Sound & Signal Systems Operates high-end sound systems. Summit Fire (CI Capital)
02/1/21 Total Video Products Inc. Distributes and integrates audio-visual equipment. Solutionz (Fernandez)
02/18/21 Integrated Audio Systems, Inc. Provides audio-visual consultancy services. Pearl Technology (AEA)
02/24/21 Audio Video Excellence, Inc. Comprises installation of entertainment products for homes. GHT Group
03/23/21 Sahara Presentation Systems Distributes audio-visual and IT products. BOXLIGHT, Inc.
05/4/21 Sound Foundation Limited Audio-visual production supplier. d&b audiotechnik (Ardian)
05/12/21 Hennessey Sound Design Integrator of professional audio systems. Golden Triangle Ventures
05/17/21 CBCI Telecom Provider of audio-visual and conferencing solutions. Solotech (Desjardins)
05/25/21 Nor-Com Inc. Focuses on audio-visual and sound systems installations. Encore Technologies
05/25/21 Vanguardia Limited Offers acoustics and audio-visual consultancy services. Buro Happold Limited
05/26/21 Dubbing Brothers S.A.S. Provides audio, video, technical, and creative services. Atalante (Capza)
06/1/21 Wavefrom Entertainment Full service entertainment company. Solotech (Desjardin)
06/21/21 Neets A/S Sells audio-visual (AV) equipment. Biamp (Highlander)
06/30/21 Cinemassive Displays Manufactures collaborative visualization systems. Haivision Systems Inc.
06/30/21 Videlio SA (ENXTPA:VDLO) Provides audio-visual services. Crozaloc SA
Hearing Protection
Date Target/Issuer Business Description [Target/Issuer] Acquirer (Ultimate Parent)
06/22/20 Jordan TE.CH. SAT Distributes acoustic amplifiers for hearing loss. Montefarmaco OTC S.p.A.
06/22/20 Westone Audio Comprises in-ear and custom earphone solutions. Lucid Audio, LLC
08/06/20 Wise El Santo Co., Inc. Distributes hearing protection. Mallory Safety and Supply
12/22/20 Racal Acoustics Ltd Manufactures in-the-ear headsets. Invisio AB (publ) (OM:IVSO)
Source: Capital IQ and Capstone Partners Research
16Audio & Acoustics | July 2021
RECENT TRANSACTIONS (CONTINUED)
Sound Absorption
Date Target/Issuer Business Description [Target/Issuer] Acquirer (Ultimate Parent)
01/21/20 Kinetics Noise Control, Inc. Manufacturers products for sound and vibration. Catalyst Acoustics (Stephens)
01/31/20 AVA Monitoring AB Develops ground vibration and noise measurements. Indutrade AB
03/11/20 Lencore Manufactures sound masking solutions. Emmis Communications
06/09/20 SoundChip SA Develops active noise cancellation technology. DSP Group Ltd.
07/03/20 ECO CONTRACT Srl Supplies acoustic panels. Sciuker Frames S.p.A. (BIT:SCK)
07/14/20 Fräsch Manufactures PET acoustical felt products. Catalyst Acoustics (Stephens)
07/23/20 Akustikmodular AG Offers room acoustics. Rigips Ag
08/03/20 Ocean Acoustical Services Offers consulting services for acoustics. ThayerMahan, Inc.
08/07/20 Acoustics STS Group Comprises automobile acoustics manufacturing. Adler Pelzer Holding GmbH
08/20/20 Trimo d.o.o. Constructs sound-proof and insulation systems. Kingspan Group plc
08/25/20 BabbleLabs, Inc. Develops noise removal software. Cisco Systems, Inc
09/30/20 Acousti Engineering Co. Provides acoustical ceilings. Ardian
10/05/20 MegaMet Industries, Inc. Manufactures customized acoustic metal doors. Premier Products, Inc.
10/06/20 The Kaschwig Group Manufactures soundproofing. MIB Industriebeteiligungen
10/21/20 Farrat Isolevel Ltd. Manufactures vibration isolation products. Oliver Farrell
11/02/20 Dynamat Inc. Sells acoustic environmental solutions. Gladstone Investment
11/05/20 Petit Chateau S.R.L. Develops high thermal and sound insulation. Gaensel Energy Group
11/20/20 Arktura, LLC Manufactures acoustic design solutions. Armstrong World Industries
12/02/20 Card Geotechnics Limited Offers sound engineering-based advice. CET Structures (Palatine)
12/18/20 FAIST Anlagenbau GmbH Installs noise control systems. Paguasca Holding AG
01/14/21 Mt. Lebanon Office Interiors Distributes sound masking products. Bulldog Office Products, Inc.
01/14/21 CeraCon Ltd Manufactures noise and vibration reducing materials. Robert Jones
02/04/21 CTA Acoustics, Inc. Manufactures acoustical and thermal insulation materials. Trèves (Fonds de Modernisation)
02/05/21 Christian Berner Tech Provides noise-reduction solutions. Concejo AB
02/18/21 Acoustics and Soft Trim Manufactures acoustics for automotive industry. Adler Pelzer Holding GmbH
03/11/21 STS Group AG (XTRA:SF3) Manufactures acoustic and thermal insulation solutions. Adler Pelzer Holding GmbH
06/07/21 General Ceiling Offers sound/thermal insulation services. Installed Building Products
06/21/21 Lydall Manufactures acoustical barriers. Unifrax (Clearlake)
06/15/21 Collaborative Technology Designs audio-visual and sound masking systems. Corbett Technology (Wind Point)
Sound Management
Date Target/Issuer Business Description [Target/Issuer] Acquirer (Ultimate Parent)
01/02/20 Home Division Of Sound FX Installs consumer electronics systems. Electronic Interiors
01/02/20 GoldenEar Technology LLP Manufactures loudspeakers and speaker systems. AudioQuest, Inc.
02/05/20 Gaming Headsets Manufactures gaming headsets. Nacon SA
02/20/20 GRAS Sound & Vibration Manufactures measurement microphones. Audio Precision (Battery Ventures)
04/21/20 Outdoor Technology Manufactures rugged audio and power products. Protempo US Limited
06/12/20 Bowers & Wilkins Group Develops home entertainment equipment. Sound United (Charlesbank)
06/23/20 Lucid Sound, Inc. Manufactures audio products. PowerA
09/21/20 Dobson Sound Productions Offers sound production equipment. Creative Production Group
10/23/20 Dynaudio A/S Manufactures class loudspeakers. Goertek Group Company Limited
12/01/20 LivingSound, LLC Retails audio, video, and home automation products. McClelland Inc.
01/13/21 Assets of Harman Comprises audio products manufacturing business. Evertz Technologies Limited
01/15/21 Autonomy Engine, LLC Develops VoiceVibes to sound natural. Btc Mobility, LLC
02/23/21 Morris Light and Sound, Inc. Operates as an audio provider. Solotech (Desjardins)
02/26/21 Assets of Savari Technologies for automotive telematics. Harman International (Samsung)
03/29/21 B&C Speakers S.p.A. Production of professional loudspeakers. First Capital S.p.A. (BIT:FIC)
04/14/21 PEAG, LLC Manufactures consumer audio products. Noritsu Koki Co.
04/19/21 Wrightson, Johnson Designs acoustics and noise control solutions. PMY Group Pty Ltd
05/26/21 S&O Electronics Manufactures audio-visual products. Sharp Corporation
06/11/21 Sphere L22 Microphone Offers audio recording products. Universal Audio, Inc
Source: Capital IQ and Capstone Partners Research
17Audio & Acoustics | July 2021
AUDIO & ACOUSTICS TEAM & TRACK RECORD
Capstone Partners is one of the most active investment banking firms in the Audio & Acoustics Sector
and one of the few M&A advisors specifically focused on the industry.
Our team of award-winning M&A professionals are highly experienced in both sound & communication
systems as well as sound protection and mitigation, completing transactions:
• From: Sound masking to hearing protection and from headsets to anechoic chambers.
• Used by: Popstars and fighter pilots as well as office workers and acoustical engineers.
Ian Cookson Darin Good
Managing Director Managing Director
617-470-9338 303-549-5674
icookson@capstonepartners.com dgood@capstonepartners.com
Roger Kahn Hilary Morrison
Managing Director Vice President
917-597-2245 917-763-0121
rkahn@capstonepartners.com hmorrison@capstonepartners.com
TRACK RECORD
Sound In-Ear Sound Hearing Absorbent Communications In-Car
Masking Communications Mitigation Protection Materials; Anechoic Headsets Entertainment
Chambers
INDUSTRY AWARDS
18Capstone Partners is one of the largest and most active independently-owned
investment banking firms in the United States. Over the past 20 years, thousands
of business owners, investors, and creditors have trusted us to help guide their
strategic decisions and maximize financial outcomes at every stage of the
corporate lifecycle.
MIDDLE FULL SUPERIOR TOP ESTABLISHED
MARKET SERVICE CLIENT RANKED BRAND
FOCUS CAPABILITIES RESULTS PERFORMANCE REPUTATION
A DIFFERENT KIND OF FIRM. BUILT FOR THE MIDDLE MARKET.
Mergers & Capital Financial Special ESOP
Acquisitions Advisory Advisory Situations Advisory
&
Restructuring
• Sell-side Advisory • Transaction Advisory • Special Situations
• Equity Advisory • Interim Management
• Buy-side Advisory • Debt Advisory • Turnaround
• Recapitalizations • Performance • Restructuring
• Infrastructure Finance Improvement
• Mergers & Joint • Bankruptcy
Ventures • Valuation Advisory
• Insolvency
• Litigation Support
Sign Up for Industry Insights.
Delivering timely, sector-specific intelligence to your inbox
One of our core capabilities is to deliver sector-specific intelligence
designed specifically for industry leaders, private equity firms and
their advisors. Our industry reports and featured articles deliver
real-time access to key sector data including:
• Emerging industry trends
• Acquirer and investor appetites
• Mergers & acquisitions market analysis
• Notable transactions
• Public company data
Receive email updates with our proprietary data, reports, and insights
as they're published for the industries that matter to you most.
Subscribe
capstonepartners.comMarket Presence
With a long-established U.S. footprint, together with an international partner
platform, we provide clients with broad expertise and access to key market
relationships on a global basis. Our presence is backed by ~200 professionals in the
U.S. with 450+ professionals across 43 countries.
218 $12.5B 30% 6th
M&A transactions aggregate of our deals globally ranked for
completed in 2020 transaction value are cross- deals under $500m
border
$65.1M 51 65%
average deals involving foreign completed with a
transaction private equity firms European partner
value
United States International
170+ professionals 450+ professionals
12 offices 60+ offices in 43 countries
Boston · Chicago · Dallas · Asia: China · India · Japan · Thailand
Denver Detroit · Los Angeles · Africa: Congo · Egypt · Ghana · Ivory Coast · Mauritius · Morocco · Nigeria · Senegal · South Africa
New York Orange County · Americas: Toronto · Vancouver · Argentina · Brazil · Chile · Colombia · Mexico · Panama & Central
Philadelphia Richmond · San America · Peru
Diego · Tampa Europe: Belgium · Bosnia & Herzegovina · Croatia · Czech Republic · Finland · France · Germany ·
Hungary · Ireland
Italy · Netherlands · Poland · Portugal · Russia · Serbia · Slovakia · Slovenia · Spain · Sweden ·
United Kingdom
capstonepartners.comYou can also read
