NEW YORK, Jan. 12, 2012 (GLOBE NEWSWIRE) -- Tangent Capital Partners, LLC, a merchant bank, announced today that Mach Speed Technologies, a portfolio company of Transition Capital Partners, successfully invested in JLab Audio, LLC, a leading headphone and audio accessory company.
JLab Audio was founded in 2006 and has experienced robust year-over-year domestic and international sales growth since inception. In early 2011, Tangent Capital was retained by JLab Audio to explore a potential growth capital transaction to fuel further growth and expansion. Tangent Capital advised JLab Audio on all aspects of the deal, from target buyer selection, transaction structure, to deal negotiations.
Josh Rosenfield, CEO of JLab Audio, said, "The investment by Mach Speed represents a significant milestone for JLab Audio. Mach Speed is the perfect partner for us; they have a highly complementary product assortment, a strong retail presence, and they understand our business and the growth initiatives needed to take the business to the next level."
According to Rick Baldwin, Managing Director at Transition Capital, "Transition Capital is very excited about Mach Speed's investment in JLab Audio. We believe the business presents very attractive growth opportunities. Josh Rosenfield has built a dynamic business, which focuses on innovative product design and maximizing customer value. Josh has built this business around understanding JLab's customers and we are pleased to partner with him."
Mach and JLab recruited veteran CE executive Win Cramer as JLab's new GM. "Win is a great addition to the JLab/Mach team, bringing seasoned CE management skills and solid industry experience." Josh Rosenfield also said, "We're excited to have him on board and are planning great things for 2012 and beyond."
Noah Anderson, Managing Director at Tangent Capital, adds, "The JLab Audio transaction highlights the fact that deals are still getting done in the middle-market despite poor macroeconomic conditions. It also demonstrates that the way to maximize shareholder value is by building a company with a lean infrastructure, large e-commerce distribution and solid brand recognition, which is what JLab Audio has done."
About JLab Audio
JLab Audio, headquartered in Tucson, AZ, designs, develops, manufacturers, and markets a best-selling assortment of innovative, high-quality, and ergonomic headphones and audio accessories primarily for the mobile device market. The company was founded in 2006 by a successful entrepreneur and lifelong music and lifestyle enthusiast, Josh Rosenfield. JLab Audio was recently named to the Inc. 500 list of fastest growing companies in the United States.
About Mach Speed Technologies
Mach Speed Technologies, headquartered in Ada, OK, is the leading manufacturer and distributor of "opening price point" MP3, MP4, and various other digital media players. The CEO and founder of Mach Speed is Bill Howells, who continues to expand Mach's product base supporting the needs of both its retail and on-line customers. The Mach team takes a very consultative approach to assist its retail customers in their merchandising strategies. Bill Howells has said, "We are successful only when our customers are successful." Transition Capital Partners invested in and partnered with Bill Howells and Mach Speed Technologies in 2011 with leveraged financing provided by Petra Capital Partners and Bush O'Donnell Capital Partners.
About Transition Capital Partners
Transition Capital Partners is a middle-market private equity firm headquartered in Dallas, TX. Transition Capital specializes in leveraged recapitalizations and management buyouts of well-managed, entrepreneurial, middle-market businesses. Transition Capital is particularly successful when investing in high-growth companies where additional management and strategic resources are required by the existing ownership group.
About Tangent Capital Partners
Tangent Capital Partners provides merger & acquisition services for middle-market companies, alternative strategies, pre-public equities and services for financial institutions. Headquartered in New York City, Tangent Capital is in the heart of the nation's financial center and has deep relationships with some of the world's leading financial institutions. The middle-market merger and acquisition division of Tangent Capital prefers to work with companies with $5-300 million in revenue.