Mackie Designs Restructures with Investment and Cash Infusion from Sun Capital, Stock Trades on OTC Instead of NASDAQ

In an arrangement expected to close by today, Mackie Designs has agreed to an equity investment by an affiliate of Sun Capital Partners, a Boca Raton-based private investment firm.

Related to the restructuring, Mackie has voluntarily delisted its publicly-traded common stock from the NASDAQ exchange, and has obtained approval to trade the shares (MKIE) on NASD’s Over-the-Counter Bulletin Board, or OTC Bulletin Board.

Mackie is widely known and highly regarded in the professional audio field as a leading manufacturer of consoles, mixers, studio and stage monitors, power amplifiers, audio processing software and control devices, for sound reinforcement, recording studio, installed sound, and custom home install markets. Company brands include EAW and RCF Precision, in addition to the Mackie label.

Sun Capital is acquiring approximately 9.8 million shares of Mackie common stock, roughly 65% of Mackie’s total common stock outstanding, through the purchase of approximately 7.4 million outstanding shares from certain selling shareholders and approximately 2.4 million newly issued shares for a total of about $10 million in cash.

“We are excited about this transaction,” said Mackie CEO Jamie Engen. “Upon closing, Mackie will receive approximately $6.3 million in fresh capital. Just as important, we also expect to benefit from the active support and hands-on participation of Sun Capital in assisting us to improve existing operations and to pursue potential new opportunities.”

Mr. Engen added that although company founder Greg Mackie is selling a portion of his shares in the transaction with Sun Capital, he will remain a shareholder and will enter into an exclusive consulting agreement with Mackie at closing.

Speaking for Sun Capital Partners, vice president Jason Neimark commented: “We are excited about our investment – Mackie has a strong brand, loyal customer base, and solid work force. We look forward to working with the management team to fully leverage these strong attributes and to position the company for long-term success.”

Mr. Engen adds, “We are focused on reducing costs and increasing productivity throughout the organization, including the rationalization of Mackie’s global manufacturing operations, R&D, and product lines. We are making progress in these efforts, and welcome the involvement of Sun Capital as an active partner in the next phase of our growth.”

Mackie Designs Web Site

Speak Your Mind

*