Maker of Behringer, Midas brands working with JPMorgan Audio equipment firm gauging interest from investors ByManuel Baigorri and Vinicy Chan Share this article @ManuBaigorri + Get alerts for Manuel BaigorriVinicy Chan In this article JPM JPMORGAN CHASE 148.93USD-2.34-1.55% Music Tribe, whose audio equipment has been used by artists from U2 and AC/DC to Earth, Wind & Fire, is exploring strategic options including a stake sale amid interest from potential investors, according to people familiar with the matter. The closely held company has hired JPMorgan Chase & Co. to help assess approaches from both investment funds and strategic players, the people said, asking not to be identified because the matter is private. Founded and led by entrepreneur Uli Behringer, Music Tribe could be valued at about $2 billion in a potential transaction based on the firm’s growth prospects, as well as other industry transactions and peer trading multiples, the people said. Music Tribe’s 2021 Ebitda is estimated to reach about $100 million, the people said. Considerations are preliminary and owner Behringer could decide against pursuing any transaction, the people said. Representatives for JPMorgan and Music Tribe declined to comment. The company traces its roots to 1989 when musician and sound engineer Behringer decided to start his eponymous brand after being unable to afford equipment for his own studio, according to its website. Its products range from microphones and guitar amplifiers to sound mixing consoles, speakers and other professional-quality sound equipment. Music Tribe has grown both organically and via acquisitions of brands such as Midas, Lab.Gruppen and Klark Teknik. Other brands within the company include Tannoy, Turbosound and Aston Microphones. It is present in about 11 locations across Asia, Europe, the U.S. and Canada, the website shows. It also counts integrated and automated in-house manufacturing facilities in Malaysia and China. The audio equipment industry has drawn interest from investors in recent years. Private equity fund Ardian bought a majority stake in U.K.-based Audiotonix in 2020 for an undisclosed amount. (Updates with background details from sixth paragraph.) |
