In a very interesting move, ARRI has entered into an agreement to sell its global rental activities in Europe, the United Kingdom, and North America to H2 Equity Partners as part of a management buy-out led by the existing ARRI Rental leadership team. The restructuring of the company has already seen it being bought out by the Riedel Group, and several of the factories, including the one that used to make ARRI lights, were closed down.
According to ARRI, the transaction is intended to sharpen ARRI’s strategic focus on camera, lighting, and software-based technologies, create clearer market roles for ARRI and the rental business, and enable the rental business to continue to develop independently and to unlock additional market potential.
Illumination Dynamics will remain part of ARRI and is not included in the transaction.
For ARRI, the divestiture is said to be a planned and significant element of the company’s long-term strategic development. A key rationale for the transaction is to resolve a structural conflict of interest between ARRI’s manufacturing business and its own rental business: as a manufacturer of camera and lighting technology, ARRI supplies customers and partners worldwide, some of whom compete with its rental activities.
For ARRI, this transaction will sharpen its focus on the development, production, and commercialization of innovative camera, lighting, and software-based technologies.
“This transaction is a milestone in ARRI’s strategic transformation and future positioning. It enables us to direct our investments even more specifically toward the further development of our technologies and new growth areas. At the same time, it allows the rental business to continue to develop independently and to unlock additional market potential.”
Thomas Riedel, owner of ARRI as well as founder and owner of Riedel Communications and the Riedel Group
Separating the business areas is aimed at creating clearer market roles going forward. ARRI will further strengthen its position as an independent technology partner, while the standalone rental company will be able to expand its market opportunities and operate independently.
According to ARRI, the two companies will continue to work closely together after the transaction, and ARRI will remain an important technology partner to all rental companies. At the same time, close exchange with users and product specialists will continue, ensuring that valuable customer feedback can continue to flow directly into the development of new technologies.
H2 Equity Partners is said to bring extensive experience in developing mid-sized companies as well as in carve-out and management buy-out situations. Dana Harrison and Andy Shipsides will continue their leadership responsibilities in the respective regions. Dana Harrison, who will also serve as CEO of the global rental business.
The closing of the transaction is expected following the fulfillment of the
contractually agreed closing conditions. The parties have agreed not to disclose financial details.
ARRI Rental operates through a network of rental facilities across North America, Europe, and the UK. They are more than just a rental facility, and they have been the driving factor in developing exclusive, proprietary technologies, including the ALEXA 65 and customizable lens options across all formats, among them the DNA, ALFA, Moviecam, and HEROES lenses. They have also come up with grip offerings that include the HEXATRON off-road crane vehicle and versatile Hover Dolly, as well as the modular BrikLok LED panels.
ARRI Rental has been a staple in the industry for a very, very long time, and this sale is a clear indication that you need to adapt in a quickly changing market, or you can run into financial difficulties. Hopefully, this is a positive step forward for ARRI and not a backwards step.
