Stripes Group Closes Majority Recapitalization of Turtle Beach, the Leading Brand in the Rapidly Growing Gaming Headset Market

Ron Doornink, Stripes Group Operating Partner and former President of Activision, to assume leadership role as Executive Chairman

Also receives new Senior Term Debt from RBC Bank and PNC Bank to support rapid growth and meet oversubscribed channel and customer demand

Oct 20, 2010, 06:00 ET from Stripes Group

ELMSFORD, N.Y., Oct. 20 /PRNewswire/ -- Voyetra Turtle Beach, Inc. ("Turtle Beach"), the leading provider of stereo video gaming headsets, announced today that Stripes Group has acquired a majority position in the company.  Stripes' equity stake was acquired primarily from passive investors while the managing founders, who will continue in their current leadership roles, retain nearly their entire ownership stake post transaction.

Ken Fox, Founder and Managing Partner of Stripes Group, will join the Turtle Beach Board of Directors.  "Carmine, Fred and the entire Turtle Beach team have done an exceptional job capturing the #1 market share position in the rapidly growing video gaming audio peripheral market by developing technically superior products.  This business couldn't be a better fit with the investment strategy of Stripes Group – to partner with innovative, market-leading, entrepreneur-owned companies that are rapidly growing and profitable.  The Turtle Beach brand has a fanatical following among influential hardcore gamers and a long track record of developing technically superior audio products."

To continue to build on and drive Turtle Beach's success, Stripes Group is adding Ron Doornink as Executive Chairman.  Ron, currently an Operating Partner at Stripes Group and the former President of Activision, Inc., has also made a significant personal investment in the company.  An industry veteran, Ron's experience will be instrumental in developing a scalable infrastructure to support a very large, fast growing market.  "Turtle Beach is a truly special brand that has been built upon a foundation of the highest quality products and constant innovation.  I am thrilled to have the chance to partner with Turtle Beach to meet growing consumer demand by increasing our retail distribution and accelerating our pace of new product development."

Carmine Bonanno, Founder and CEO of Turtle Beach said, "After an extensive process, we are extremely pleased to partner with Stripes Group and to have the opportunity to work closely with Ron Doornink.  Stripes is committed to our vision of developing superior audio products for gamers and has a track record of helping entrepreneurs achieve bold goals through team development, operating experience and strategic expertise."

Fred Romano, Founder and COO of Turtle Beach added, "As we begin to quickly make material investments in our operations and supply chain to meet consumer and retail demand for Turtle Beach products, the timing of this transaction with Stripes simply could not be better."

RBC Bank (USA) and PNC Bank, National Association ("PNC Bank") provided financing in connection with the acquisition.  Cascadia Capital, LLC acted as Turtle Beach's financial advisor in the transaction.

About Voyetra Turtle Beach, Inc.

Turtle Beach (www.turtlebeach.com) designs and markets premium audio peripherals for personal computer and video game platforms, including its acclaimed line of Ear Force gaming headphones and headsets crafted for XBOX360® and PS3™ game consoles and PC games.  Turtle Beach's Ear Force X41 wireless headset is Official XBOX Magazine's "2009 Peripheral of the Year." Turtle Beach, headquartered in Elmsford, New York, is a brand of Voyetra Turtle Beach, Inc., which has been at the forefront of music and audio technology for more than three decades and is recognized as a pioneer of today's PC audio industry.

About Stripes Group

Stripes Group, founded in 2003 and based in New York, is a private investment firm focused on growth-stage minority and majority investments in rapidly growing and profitable internet, software-as-a-service, technology-enabled services and branded consumer products companies.  Stripes Group typically partners with founder-owned and operated companies that have had no prior institutional investors.

For more information on Stripes Group, visit www.stripesgroup.com.

SOURCE Stripes Group



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