Sound system supplier SSE secures £5.7m to fund growth
A WORCESTERSHIRE company which supplies the sound systems to many of the UK’s largest music events has received a £5.7m funding injection to facilitate expansion of the business.
The backing from RBS Corporate Transactions will allow Redditch-based SSE Audio Group to fund expansion plans, including the acquisition of Manchester-based Wigwam Acoustics. The discounted finance was provided by RBS through the Government’s Funding for Lending Scheme.
SSE is a major player in the live production industry and the acquisition of Wigwam Acoustics propels the business further onto the global stage. The enlarged SSE group is now the biggest audio production company in the UK, employing 140 full time staff with forecast combined revenues in excess of £20m. Wigwam’s Manchester base will be added to SSE’s current locations.
SSE’s core activity is providing full audio packages for large festivals such as Reading & Leeds, V Festival, T in the Park, and Download. Wigwam works mainly in the touring market and provides the sound for a host of the UK’s leading artists, currently including Coldplay and One Direction.
Formed in 1976 by then students John and Heather Penn, SSE began life as a college disco but quickly morphed into the newly emerging business of PA rental as bands moved away from owning their own equipment. SSE achieved early success working with up and coming talents such as the Darts, Undertones and Buzzcocks.
John Penn, Group Managing Director, said: “The addition of Wigwam is another significant milestone in the company’s policy of growth through acquisition, which commenced in 2001 when we merged with Melpomen SAS in France.
“Since then we have made a number of acquisitions, but Wigwam is the largest and most significant – Creating the largest audio group in the UK. We expect there to be further consolidation within the industry and envisage that the SSE Group will continue to grow both organically and through further targeted acquisitions.”
In addition to rentals, both companies have strong sales divisions supplying pro-audio equipment to schools, colleges, theatres and places of entertainment. SSE Installations installs and maintains audio visual systems in nightclubs, bars and restaurants, alongside stadiums and arenas such as London’s O2 Arena. Wigwam is particularly active in complementary markets such as places of worship and conference centres.
The funding deal was transacted by Ricardo Laverty in the RBS Corporate Transactions team with the Financial due diligence completed by Baker Tilly, led by Gary Houghton and Russell Armstrong. The customer’s legal team was led by Amanda Allen at Gunner Cooke and the bank’s legal team was led by Graham Hall at Shoosmiths.
Paul Gaynor, RBS Commercial Banking Manager, said: “Despite SSE’s rapid growth, the business has maintained its genuine, grass roots culture and John, Heather and their team take pride in providing the very highest quality service. With plans to increase international exposure, I know we can look forward to seeing SSE becoming even stronger in live production services.”
Wigwam Director Mick Spratt added: “Chris Hill (fellow director) and I were looking for a route to secure a long term future for Wigwam and our staff which would be least disruptive to what is a very successful company. We’ve known and respected John and Heather and the people at SSE for over 30 years and believe that both companies have similar cultures and vision.”
Mr Laverty said: “We are delighted to enable SSE to progress with a transaction which makes strategic sense for both SSE and Wigwam. We were highly impressed by John, Heather and the management team in SSE and their exciting future plans for the enlarged group. We look forward to a long-term relationship with the company.”
