The Riverside Co. is selling DPA Microphones, a Danish developer and manufacturer of high-end microphones, to RCF Group.
During Riverside’s investment, DPA’s sales and EBITDA nearly doubled while its product portfolio and distribution network grew significantly.
“Together with the DPA team, we were able to achieve all of our goals for this investment,” Riverside partner Karsten Langer said in a statement. “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 worldwide by more than 2,000 dealers.”
Riverside invested in DPA in late 2013. 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 relevant industry 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,” Nielsen said. “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
- 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 adviser.
- PWC provided financial and tax VDD.