MBO at Northampton guitar amp manufacturer

Blackstar Amplification, the Northampton-based guitar amp maker, has undergone an management buyout from Foresight Group, the private equity firm.

Blackstar was founded in 2004 by four friends and bandmates who collaborated on the design and manufacture of new and innovative guitar amplifiers and pedals. The group spent two and a half years performing intensive technical research in a garden shed in Northampton before the first Blackstar products were launched in March 2007.

Today, the firm turns over £10m. It has over 45 products sold in 52 countries worldwide, its products being used by artists including Gus G (Ozzy Osbourne/Firewind), Neal Schon (Journey), Silenoz (Dimmu Borgir) and James Dean Bradfield (Manic Street Preachers). All research, financial, sales and marketing functions are based in Northampton with manufacturing in the Far East.

Foresight originally invested £3.5m in 2012 to provide growth capital and to partially restructure the shareholder base. The secondary management buyout was backed by Shawbrook Bank and Blackstar was advised by RSM.

Ian Robinson, co-Founder and Managing Director said: “This marks an exciting new chapter in Blackstar’s history, which will allow us to retain our independence and gives us the opportunity to take our business to the next level. We are looking forward to forging a strong relationship with Shawbrook, who have shown a real interest in our business and future growth strategy, and many years of working with our distributors, dealers and, most of all, our customers to continue to deliver ‘The Sound In Your Head’.”

Stephen Orriss who led the advisory team from RSM said: “Blackstar is a world renowned brand and this transaction enables the business to continue to grow as it enters the next chapter of its development. We were delighted to support the management team in this transaction and we wish them every success in the future.”

Gary Smith, corporate partner at Freeths in Milton Keynes handled the legal aspects.

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