Our industry is shrinking! again.

Arri is reportedly weighing its future and contemplating a potential sale.

This news, reported by Bloomberg, arrives just a week after Arri announced its new $55,000 Alexa 35 Xtreme cinema camera.

Bloomberg claims that Arri Group’s management and owners are “in initial talks with potential advisers” as they work on a deal to sell a stake in Arri. Sales, including both minority and majority stakes, are in consideration at this time.

Alongside considering a sale, Arri has been working with a consultancy group, AlixPartners, to “streamline its business,” according to sources who did not want to be identified.

Arri headquarters in Munich, Germany

Arri Group, founded in 1917 by August Arnold and Robert Richter, is a private company wholly owned by the Stahl family, heirs of Robert Richter. The Stahl family acquired 50% of Arri from the heirs of August Arnold more than a decade ago.

Bloomberg‘s sources indicate that the Stahl family has not committed to any particular sale plan, and it remains possible that there will be no sale made at all.

However, if Arri did sell, it would be a significant shakeup in the professional cinema industry, where Arri is particularly prominent at the extremely high end thanks to its cinema-grade cameras, lenses, and lighting equipment.

Despite its more than a century of success, Arri’s business has faced increasing challenges, thanks in large part to disruptions in the movie and television industries caused by the COVID-19 pandemic and then the writer and actor strikes in the following years.

Arri Alexa 35 Xtreme

Production companies have been working on relatively fewer projects and spending less money, which harms Arri’s business across the board. In response, Arri has sold what Bloomberg describes as “non-core assets,” including lighting fixtures, to raise cash.

It is also worth considering that despite Arri’s strong reputation, it faces increasing competition from other cinema companies at relatively lower price tiers, both in the direct-purchase and rental markets. It is no longer the case that professional-grade image quality and optical performance are exclusive to camera kits that cost six figures.

This will be a fascinating situation to keep an eye on, as Arri is one of, if not the biggest name, in professional cinema cameras and lenses.

The Freedman Group, parent company of trailblazing audio brands including RØDE, Mackie, Aphex, SoundField, and Event Electronics, has today announced the acquisition of Lectrosonics, a globally renowned US manufacturer of professional wireless audio systems.

Founded in 1971 and headquartered in New Mexico, USA, Lectrosonics has been at the forefront of UHF wireless audio technology for film, broadcast, and high-end theatre applications for over five decades. With a reputation for unmatched reliability and refined technical excellence, the company received an Academy Award in 2017 for its revolutionary Digital Hybrid Wireless Technology – further cementing its status as the gold standard in professional wireless audio and the equipment of choice for audio professionals worldwide.

“We are thrilled to welcome Lectrosonics to The Freedman Group family,” said Peter Freedman AM, Founder and owner of The Freedman Group. “For decades, Lectrosonics has been synonymous with the highest possible performance along with unmatched reliability and innovation in professional wireless audio. Their uncompromising commitment to quality perfectly aligns with our own values and strengthens our position as a global leader in professional audio solutions.”

He added, “I am beyond excited and genuinely humbled that Lectrosonics is joining our team. They are without doubt the world’s leader in wireless communication for the entertainment and broadcast markets. Being able to now offer our customers the finest sounding wireless technology in the world is, without exaggeration, something that is very special to me.”

While financial terms remain undisclosed, the deal encompasses the company’s brand, complete intellectual property portfolio, factory buildings in Rio Rancho, New Mexico, and a comprehensive array of production machinery and equipment. The Freedman Group has confirmed that Lectrosonics will continue to operate from its existing facilities in New Mexico, with the current management team remaining in place to ensure continuity and preserve the brand’s unique identity and customer relationships. The transaction was brokered by PwC’s M&A team, led by Troy Porter and James Hocking, on behalf of The Freedman Group. Mediabridge Capital Advisors served as M&A advisors to Lectrosonics.

Wes Herron, President of Lectrosonics, stated, “Joining The Freedman Group represents an exciting new chapter for Lectrosonics. With its global reach and shared passion for audio excellence and inhouse manufacturing, we look forward to accelerating product development and expanding our market presence while maintaining the quality and reliability our customers expect.”

He added, “Over the years, we’ve garnered interest from some of the biggest names in the global audio industry, but RØDE was the only one that truly felt like the right fit. We couldn’t be more excited to join The Freedman Group family and take this next step together.”

Damien Wilson, CEO of The Freedman Group, echoed the sentiment: “Lectrosonics’ journey, in many ways, mirrors our own. We’ve both built reputations on innovation, independent production, and maintain a deep respect for the creative community. This partnership is a natural fit and together, we’re going to reshape the landscape of wireless audio.”

With complementary technologies and shared values at their core, the addition of Lectrosonics to The Freedman Group strengthens the Group’s global portfolio, offering new opportunities for growth, innovation, and manufacturing diversity across its Australian headquarters and US operations.

This acquisition cements The Freedman Group’s position as one of the most comprehensive pro audio companies in the world, expanding on a portfolio which already includes RØDE microphones and audio devices, Mackie live performance sound equipment, Aphex signal processing technology, SoundField ambisonic microphone systems and Event studio monitors.

Herc Sells Cinelease, Its Film Production Division, to Private Investment Company Zello

With operations spanning every major production hub in the U.S. and Canada, Cinelease supports thousands of film, television, and commercial productions annually through its integrated studio and equipment offerings.

Herc Rentals has sold its film and television production equipment rental division Cinelease to Zello, a private investment firm based in Burbank, Calif. Cinelease is based in Los Angeles, but has locations in several major production hubs in the United States.
Cinelease was founded in 1977, but has been owned by Herc for the past six years. The sale occurs during a period in which major Hollywood studies have reduced spending on film and television production. Cinelease will continue to operate independently as a privately owned company and be led by Mark Lamberton, Chris Rogers and Gannon Murphy, veterans of the studio equipment rental business.

Cinelease offers a robust inventory of lighting and grip equipment and serves as the professional manager of studio facilities owned by leading real estate investors. With operations spanning every major production hub in the U.S. and Canada, Cinelease supports thousands of film, television, and commercial productions annually through its integrated studio and equipment offerings.

“This marks an exciting new chapter for Cinelease,” said Mark Lamberton, president of Cinelease. “We’re a company built on service, relationships, and delivering when it counts—led by people with a deep understanding of what it takes to make it happen. Zello brings deep respect for our foundation and the operational scale to help us go even further for the entertainment community. Together, we’ll keep raising the bar for production support across North America.”

Herc said in a statement: "Herc Rentals first announced its intent to explore strategic alternatives for Cinelease in late 2023 as the film and studio entertainment industry had shifted to a studio-centric model, where competitiveness increasingly depends on investing in a large network of fully managed studios. This business model is a departure from Herc Rentals’ stated growth strategy. Zello brings deep operational experience in the lighting and grip space and a strong commitment to supporting Cinelease’s success as a standalone company. We are confident that this transition positions both Herc Rentals and Cinelease for continued success on our respective strategic paths."

Zello was advised by Proskauer Rose LLP as legal counsel, EY as accounting advisor, and American Discovery Capital as financial advisor. Financing for the transaction was provided by MidCap Financial, a leading middle-market lender owned and managed by Apollo Global Management. Herc was advised by Sidley Austin LLP on legal matters and Goldman Sachs on financial matters. MidCap Financial was advised by Paul Hastings LLP on legal matters.