RCF Group has signed a definitive agreement for the acquisition of DPA Microphones A/S (DPA) from The Riverside Company; RCF Group operates under the companies RCF, AEB Industriale (dB Technologies), and EAW.
In 2017 two European private equity players—Palladio Holding and Amundi Private Equity Funds—invested in RCF Group with a minority stake in order to support and enhance the group in its ambitious growth plans. Following the September 2018 acquisition of EAW, the acquisition of DPA represents a second important milestone on RCF Group’s growth path.
“Since my early days, I have been fascinated by the world of microphones. Our portfolio already represents excellence in pro audio and we are very proud to add to our roster DPA—a company that also represents excellence in the microphone industry," said Arturo Vicari, CEO, RCF Group. "We can now offer the complete audio chain, from microphones to speakers for the satisfaction of professionals around the world.”
Riverside invested in DPA in late 2013, the company stated it was attracted by its compelling brand and high-quality products, in addition to its strong product development capabilities. The firm also said it helped DPA accelerate growth by expanding product offerings like its CORE by DPA technology, enhancing sales and distribution, and improving operations by boosting the management team.
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.
“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 percent to more than 40 percent, and all major areas in the business have been professionalized and streamlined.”
“Together with the DPA team, we were able to achieve all of our goals for this investment,” added 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.”
“We have come a long way during the past few years," Nielsen concluded. "Now we look forward to a bright future under new ownership in a group with an uncompromising quality-oriented approach to the pro audio business—just like ours.”
Chiomenti provided legal assistance on the transaction for RCF Group, which was also assisted by New Deal Advisors for financial due diligence and by Deloitte for tax and legal due diligence.
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.