The Riverside Company has signed a definitive agreement to sell DPA Microphones (DPA) to RCF Group (RCF). During Riverside’s investment, DPA’s sales and EBITDA nearly doubled while its product portfolio and distribution network grew significantly, according to DPA.
“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 and helped DPA accelerate growth with a capital investment and expanding its product offerings like its CORE by DPA technology, a new amplifier technology within its line of miniature lavalier and headset microphones. They also helped sales and distribution and improved operations by boosting the management team. In fact, Riverside brought in CEO Kalle Hvidt Nielsen to lead DPA — he was the former 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. 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.