Riverside Sells Teufel to HgCapital

Getting in on a recent trend in private equity buy-outs, Riverside Company is exiting Teufel Speakers through a secondary sale to HgCapital. Riverside first acquired Teufel in 2006, subsequently tripling the number of employees while doubling revenue and earnings.

Though the exact purchase price hasn’t been disclosed, it has been estimated near €72.2 million based on the €10.8 million paid by HgCapital Trust.

Lautsprecher Teufel (www.teufel.de)
Teufel has been in the business of producing loudspeakers and home audio systems for thirty years. The company is the number one direct seller of loudspeakers in Europe, taking direct orders online and shipping to markets all over the world. Included in their product list are home theater systems, home audio systems, PC sound products, a variety of iPod accessories, and state-of-the-art THX speakers. Teufel is based in Berlin.

HgCapital (www.hgcapital.com)
HgCapital is a European PE firm established in 2000 when the staff of Mercury Private Equity acquired the business from its parent company, Merrill Lynch.

HgCapital invests on behalf of more than 200 institutional investors around the world and manages LSE-listed HgCapital Trust plc. The firm specializes in buy-outs and buy-ins, turnarounds, and growth investments in firms with a €60-€600 million enterprise value.

Sectors of interest for HgCapital include health care, industrial, media, renewable energy, and technology. Currents assets under management stand at approximately €3.65 billion.

The Riverside Company (www.riversideeurope.com)
Riverside is one of the largest global PE firms specializing in small and medium-sized businesses worldwide. Riverside seeks out investment opportunities with profitable and well-managed businesses in need of expansion capital and expertise. With seven funds at a combined total of €2.4 billion in assets, Riverside has the resources to help portfolio companies expand product lines and markets. Riverside investors include banks, endowments, funds of funds, insurance companies, and pension funds.