E-Synergy has exited its investment in audio business Blackstar Amplification to Foresight, which is injecting £3.5 million into the business.
The sale represents an 8x exit multiple on E-Synergy’s equity investment. The new capital will be used to restructure the company’s shareholder base and support the launch of its upcoming ID:Series product.
Founded in 2004, Northampton-based Blackstar manufactures guitar amplifiers and pedals. It now has a range of 45 products and a presence in 52 countries.
Its ID:Series is Blackstar’s first programmable guitar amplifier range, and is said by the business to be on sale in the coming months.
Under the terms of the new deal, Keith Pacy, former executive chairman and CEO of Maplin Electronics, is joining the board as a non-executive director. Pacy is currently non-executive chairman of greeting cards retailer Card Factory, and Mountain Warehouse, an outdoor clothing and equipment retailer.
Ian Robinson, managing director of Blackstar, comments, ‘This deal marks the culmination of a 12 month search for the right investor to partner with Blackstar for the next period of business development.
‘Foresight’s credentials are second to none and they really understand what drives a brand focussed business like ours.’
Ron Armstrong, chairman of E-Synergy, says that the deal is an ‘excellent example’ of the value increase which can be achieved from investing in early stage businesses.