LOUD Audio

{{Infobox company

| name = LOUD Audio, LLC

| logo =

| type = Private company

| traded_as =

| foundation = {{start date and age|1988}} (as Mackie Designs, Inc.)

| location_city = Bothell, Washington

| location_country = United States

| key_people = Alex Nelson (CEO), Mark Ureda (Board Director)

| industry = Audio technology

| brands = Mackie

| num_employees = 122{{cite web|url=https://www.dnb.com/business-directory/company-profiles.loud_audio_llc.7ebed17905828a03e4bd5e6d1547ca11.html |title=Loud Audio, LLC|website=Dnb.com|access-date=26 May 2022}}

| homepage = {{URL|http://loudaudio.com/}}

}}

LOUD Audio, LLC is a professional audio company based in the United States, operating in the U.S., Canada, and Shenzhen, China. Originally founded as Mackie Designs, Inc., the name was changed to Loud Technologies Inc in 2003 to differentiate its founding subsidiary, mixing console manufacturer Mackie from its eponymous brand name.{{cite web |url=http://www.etnow.com/news/2003/9/mackie-designs-changes-corporate-name-to-loud-technologies |title=Mackie Designs Changes Corporate Name to Loud Technologies |website=Etnow.com}}

Between 2003 and 2018, LOUD Technologies owned or distributed several music instrument and pro audio product brands that it had acquired over the years. Transom Capital Group acquired the company in October 2017, renaming it LOUD Audio, LLC and within 12 months had divested itself of brands Ampeg,{{cite web | title=Yamaha acquires Ampeg from Loud Audio |url=https://www.fast-and-wide.com/faw-news/fast-news/11170-yamaha-purchases-ampeg-from-loud-audio|website=Fast-and-wide.com}} Martin Audio{{cite web | title=LOUD Audio Sells Martin Audio Brand |url=https://www.soundandcommunications.com/loud-audio-sells-martin-audio-brand/|website=Sound and Communications|date=2 July 2018}} and EAW,{{cite web |title=EAW Sale Marks Loud Audio's Last Divestiture |url=https://www.prosoundnetwork.com/business/eaw-sale-marks-louds-last-divestiture |website=Pro Sound News |date=5 September 2018 |publisher=Future plc |access-date=31 December 2018}} leaving Mackie as the sole surviving subsidiary.

History

File:Logo loudTechnologies1.png

=Origin=

Greg Mackie founded Mackie Designs, Inc. in 1988, following the success of his first two professional audio equipment companies, TAPCO and AudioControl. Focused on the goal of producing a reasonably-priced high-quality mixer, he produced the company's first product, the LM-1602, in his three bedroom condominium in Edmonds, Washington.

=Early growth=

Mackie Designs, Inc. experienced tremendous growth over the next four years, with sales growing from $3.8 million to over $64 million. This success began with moving production to a proper factory for their second product, the CR-1604 mixer. The CR-1604's feature set, performance, and competitive price was an ideal fit for a wide range of applications, resulting in hundreds of thousands of units sold over the course of the next five years,

and accounting for over 48% of Mackie's overall revenues at that time.{{cite web |title=1990 Mackie CR-1604 Mixer |url=https://www.mixonline.com/technology/1990-mackie-cr-1604-mixer-383613 |website=Mix Online |date=September 2006 |publisher=Future plc |access-date=31 December 2018}}{{cite web |title=Genius!: Mackie and the CR-1604 |url=https://www.psneurope.com/psn-genius/genius2-mackie-and-the-cr-1604-19 |website=PSNEurope |publisher=Future plc |access-date=2 January 2019}}

The company's ongoing growth of more than 100 percent annually necessitated relocating and expanding manufacturing every year. By 1994, the company had grown into a 30,000 square-foot factory. The following year, as they celebrated the sale of the 100,000th Mackie mixer, the company moved into an even larger 90,000 square-foot factory and invested in automated assembly machines to achieve high productivity and quality with lower overall production costs.[http://www.soundonsound.com/sos/1994_articles/oct94/mackieprofile.html "The Making Of Mackie Mixers"], Sound On Sound, Oct 1994 With just 8 products (all mixers), Mackie Designs, Inc. completed an initial public stock offering{{cite web |title=Mackie Designs Inc. History |url=http://www.fundinguniverse.com/company-histories/mackie-designs-inc-history/ |website=Funding Universe |publisher=International Directory of Company Histories |access-date=31 December 2018}}

=Diversification and acquisitions=

At the July 1996 NAMM Show, Mackie Designs product introductions marked its first entry into power amps, and active studio monitors,[http://www.soundonsound.com/sos/1996_articles/nov96/mackieinterview.html "Greg Mackie & Cal Perkins: Mackie Designs"], Sound On Sound, Nov 1996{{cite web |title=Mackie - the first 20 years |url=https://www.emusician.com/gear/timeline-mackie-the-first-20-years |website=Electronic Musician |publisher=Future plc |access-date=2 January 2019}} while also expanding into higher-end, large-format mixing consoles. The following year marked the introduction of the Digital 8-Bus Recording Console - the company's first digital product, and the Human User Interface (HUI) control surface, co-developed with Digidesign for Pro Tools.

From 1998-2000 the company began expanding beyond the Mackie brand, acquiring Radio Cine Forniture S.p.A. (RCF) in 1998 and leveraging RCF technologies to develop Mackie's first powered loudspeaker, the SRM450, the following year. In 2000 the company acquired well-established commercial sound reinforcement system manufacturer Eastern Acoustic Works (EAW).{{cite web |title=Mackie Buying Fussion Audio |url=https://www.latimes.com/archives/la-xpm-1998-jul-01-fi-65216-story.html |work=Los Angeles Times |access-date=4 January 2019}} By 2001, loudspeakers accounted for 55% of the company's total revenues.

In 2000, Mackie Designs completed the purchase of Acuma Labs{{cite web|title=MACKIE BUYS ACUMA LABS LTD.|date=October 2000|url=https://www.mixonline.com/recording/mergers-and-acquisitions-375580|publisher=Mix Online}}{{cite web| title=Mackie Buys Digital Systems Specialist| url=https://www.lsionline.com/component/content/article/2-news/45413-mackie-buys-digital-systems-specialist-fvptz6?Itemid=101|publisher=LSi Online}} for an undisclosed sum. Acuma had been contracted by Mackie Designs for its services for several years before being acquired for its technology and scientists.

In 2001, the company entered the professional audio production market with the purchase of Sydec, and created the Mackie Broadcast Professional line of products.{{cite web |title=Mackie to buy Sydec |url=https://www.radioworld.com/news-and-business/mackie-to-buy-sydec |website=Radio World |date=24 January 2001 |publisher=Future plc |access-date=4 January 2019}}

=Behringer lawsuit=

Mackie Designs sued Behringer GmbH on June 18, 1997 alleging "trademark and trade dress infringement, copyright and patent infringement, and unfair competitive practices by two U.S. entities, a German company, their chief executive officers and others.{{cite web| title=MACKIE DESIGNS: Lawsuit filed to stop 'knockoffs' | url=https://products.kitsapsun.com/archive/1997/06-19/0018_mackie_designs__lawsuit_filed_to_.html| publisher=Kitsap Sun}} The lawsuit sought $109 million USD in actual damages up to $327 million USD in total damages under the law.

By 1999, lawsuit had been dismissed in Behringer's favour noting that "Mackie's circuit board designs were not covered by the U.S. copyright office".{{Cite web | url=http://findarticles.com/p/articles/mi_hb5264/is_199902/ai_n20420920 |title=Mackie/Behringer lawsuit. {{!}} [[The Music Trades]] {{!}} Find Articles at Bnet.com |access-date=25 October 2007 |archive-url=https://web.archive.org/web/20071216010944/http://findarticles.com/p/articles/mi_hb5264/is_199902/ai_n20420920 |archive-date=16 December 2007 |url-status=dead }}

Mackie's lawsuit against Behringer UK similarly failed with Justice Pumfrey concluding "citizens of the United States of America are not entitled to design right under the CDPA unless habitually resident in the European Union or one of the comparatively limited list of qualifying countries".{{cite web| title= Mackie Designs Inc v. Behringer Specialised studio equipment (UK) Ltd, Ulrich Bernhard Behringer & Behringer Spezielle Studiotechnik GmbH [1999] EWHC Ch 252 (22nd February, 1999)| url=http://www.bailii.org/ew/cases/EWHC/Ch/1999/252.html| publisher=BAILII}}

=Equity investment and rebranding=

In February 2003 after declining sales and 7 consecutive quarters of per-share losses, Sun Capital Partners acquired 65% of the company, and subsequently delisted from NASDAQ.{{cite web |title=Mackie founder sells at a discount | url=https://www.bizjournals.com/seattle/stories/2003/01/27/story5.html |publisher=Puget Sound Business Journal}} Greg Mackie left the board, remaining only in a consulting role.{{cite web |last1=Benzuly |first1=Sarah |title=Sun Capital Infuses Mackie |url=https://www.mixonline.com/recording/sun-capital-infuses-mackie-374137 |website=MIX |date=March 2003 |publisher=Future plc |access-date=4 January 2019}}

Six months later, in July 2003, the company issued layoff warnings to 200 manufacturing employees and planned to outsource manufacturing of key products.{{cite web |last1=Virgin |first1=Bill |title=Mackie Designs plans cuts at Woodinville plant |url=https://www.seattlepi.com/business/article/Mackie-Designs-plans-cuts-at-Woodinville-plant-1119694.php |website=Seattle Post-Intelligencer |date=19 July 2003 |publisher=Seattle Post-Intelligencer |access-date=4 January 2019}}

In September 2003 the parent company was rebranded as LOUD Technologies, Inc. to avoid confusion between the parent company and the Mackie brand.{{cite web|title=Mackie Designs, Inc. Now Loud Technologies|url=http://mixonline.com/news/audio_mackie_designs_inc| publisher=Mix Magazine}}

=Further acquisitions and divestments=

In December, 2003, LOUD divested itself from its Italian operations, including RCF.

In March 2005, LOUD acquired St. Louis Music, including Ampeg, Crate Amplifiers, Alvarez Guitars, and Knilling orchestral string instruments, and continued St Louis Music operations as an indirect wholly owned subsidiary.{{cite web |title=LOUD Technologies Acquires St Louis Music |url=https://www.prosoundnetwork.com/archives/loud-technologies-acquires-st-louis-music |website=Pro Sound News |publisher=Future plc |access-date=8 March 2005}} In March 2007, LOUD acquired Martin Audio.{{cite web |title=Loud Technologies Acquires Martin Audio |url=https://www.tvtechnology.com/news/loud-technologies-acquires-martin-audio |website=TVTechnology |date=28 April 2007 |publisher=Future plc |access-date=4 January 2019}}

In November 2008, U.S. Band and Orchestra Supplies Inc. acquired St. Louis Music (SLM) and Knilling from LOUD, with LOUD retained ownership of Alvarez, Ampeg, and Crate. The following year, SLM entered into an agreement with LOUD to exclusively sell and market Alvarez Guitars.{{cite web |title=St. Louis Makes Two New Deals |url=http://www.musicincmag.com/News/2010/100126/100126_stlouismusic.html |website=Music Inc. |publisher=Music Inc. |access-date=4 January 2019}}

=Ownership change and renewed focus=

In October 2017, Transom Capital Group acquired all LOUD Technologies brands and rebranded the company as LOUD Audio, LLC.{{cite web |title=Transom Capital Acquires LOUD Audio & Brands EAW, Martin Audio |url=https://www.commercialintegrator.com/av/audio/transom-capital-loud-audio-martin/ |website=Commercial Integrator |date=16 October 2017 |publisher=Emerald Expositions, LLC |access-date=4 January 2019}} At the time of the announcement, Transom had promised to invest and grow each of the brands but the following year, Transom completed three divestments to focus exclusively on its core Mackie brand, selling Ampeg to Yamaha Guitar Group, Inc. in May, Martin Audio to Lloyds Development Capital in July, and EAW to the RCF Group in September of that year.{{cite web |title= Transom Capital-Backed Loud Audio Sells EAW Brand to RCF Group |url=http://labusinessjournal.com/news/2018/oct/02/transom-capital-backed-loud-audio-sells-eaw-brand-/ |website=LA Business Journal |date=2 October 2018 |publisher=Los Angeles Business Journal |access-date=4 January 2019}}

In 2019, LOUD Audio announced that Mark Ureda had joined its board of directors after recently retiring as SVP at Harman Professional.

=Move from Woodinville to Bothell=

At its peak, LOUD Audio operated out of two side-by-side buildings in Woodinville, Washington: Mackie Designs I (89,147 RSF){{cite web| title=Mackie Designs I - 16220 Woodinville Redmond Rd NE, Woodinville, WA 98072| url=https://www.officespace.com/wa/woodinville/58891-16220-woodinville-redmond-rd-ne}} and Mackie Designs II (81,250 RSF){{Cite web|url=https://www.officespace.com/wa/woodinville/59401-16240-woodinville-redmond-rd-ne|title=Mackie Designs II|website=Officespace.com|access-date=26 May 2022}} housing all company operations. With the inevitable shift of manufacturing from USA to Mexico to China and the sale of several of its brands, LOUD downsized its US operations and relocated to Bothell, Washington in 2019.

=Past leadership=

Jamie Engen, former CEO (2003 - 2008){{cite web| title=CEO Jamie Engen replaced at Loud Technologies| url=https://www.lsionline.com/news/ceo-jamie-engen-replaced-at-loud-technologies-k5soga|publisher=LSi Online}}
Rodney Olson, former CEO (Aug 2008 - 2010){{cite web| title=Loud Technologies Names Rodney Olson as Chairman, CEO| date=15 August 2008| url=https://www.mixonline.com/technology/loud-technologies-names-rodney-olson-chairman-ceo-383324|publisher=Mix Online}}
Mark Graham, former CEO (Oct 2010 - 2018){{Cite web|url=https://www.fast-and-wide.com/faw-news/fast-moves/592-mark-graham-loud-technologies-inc|title=Mark Graham: Loud Technologies Inc|website=Fast-and-wide.com|access-date=26 May 2022}}
Ty Schultz, former Managing Partner, Transom Capital Group (2015 - June 2021){{cite web |title=Transom Capital moves through key-person situation after high-level departure |url=https://www.buyoutsinsider.com/transom-capital-moves-through-key-person-situation-after-high-level-departure/ |publisher=Buyout Insider |archive-url=https://web.archive.org/web/20211009165156/https://www.buyoutsinsider.com/transom-capital-moves-through-key-person-situation-after-high-level-departure/ |archive-date=9 October 2021 |url-status=dead}}
Ralph Quintero, former VP of Sales and Marketing (Feb 2020 - Dec 2021)

=Current leadership=

Alex Nelson, CEO (Aug 2020–present), former Mackie President and General Manager (2006 - 2020){{cite web| title=Loud Audio Names Alex Nelson New CEO| url=https://musicincmag.com/news/detail/loud-audio-names-alex-nelson-new-ceo| publisher=Music Inc Mag}}
Danny Olesh, CTO (Mar 2021–present){{cite web| title=Danny Olesh Joins Mackie As Chief Technology Officer| date=24 March 2021| url=https://www.twice.com/industry/people/danny-olesh-joins-mackie-as-chief-technology-officer| publisher=Twice}}
Mark Ureda, Director (Jan 2019–present){{cite web | title=LOUD Audio adds Mark Ureda to its board of directors| url=https://www.prosoundnetwork.com/international/loud-audio-ureda-board-of-directors| publisher=Pro Sound News}}