The Riverside Co. is selling its investment in Blue Microphones to Logitech. “Blue’s already-premier consumer brand and innovative product offering were very attractive upon our initial investment,” Riverside Managing Partner Loren Schlachet said in a statement. “Working with a stellar management team, we were able to help Blue’s annual sales grow in excess of 20 percent and increase earnings nearly four times under Riverside’s ownership.” The Westlake Village, California-based company manufactures high-performance, professional-quality microphones. In 2005, the company introduced the first professional USB microphone and has since developed many consumer audio products. It currently offers more than 30 distinct products for consumers and professionals. Riverside invested in Blue Microphone in 2013. “At the start of our investment, Blue was a leader in music recording, video recording and digital content creation like podcasting and YouTube applications, but has now successfully become a leader in the rapidly growing broadcast, gaming, game streaming and eSports applications,” Riverside Partner Brian Sauer said in a statament. “Riverside helped Blue improve sourcing and production, build its brand around the world, expand distribution and launch new products.” Working with Schlachet and Sauer on the deal for Riverside were:
- Operating Partner Bill White
- Associate Sara Mostatabi
- Finance Director Gary Schlegel
Jeremy Holland, managing partner of origination, sourced the initial investment for Riverside. Managing Director Brian Bunker helped perform due diligence on the original transaction. Intrepid Investment Bankers, Jones Day and Deloitte advised Riverside on the transaction.