Alpine's Journey: From Custom Earplugs to Global Hearing Protection Leader

CEO Arthur van Keeken of Alpine explains how his company, with the help of private equity, grew into a global player in the field of premium hearing protection.

Essential if you're heading to a festival this summer or attending the Dutch Grand Prix: a good set of earplugs. Alpine is a key player in this thriving market. The company started in 1994 as a specialist in custom-made hearing protection and later expanded to include a wide range of specialized earplugs. Whether for motorsports or a good night's sleep, Alpine is the place to be.

That wide range of products is there for a reason, says Arthur van Keeken, CEO of Alpine Hearing Protection: "The world is getting louder and louder. There is more and more annoying noise and harmful noise. We cater to both directions with our range. Alpine is unique in the breadth of its product offering: we make hearing protection for all ages, from babies to adults. We do this in various formats in and over the ear. It is unique how deeply we go into functionality and continuously try to improve it."

In 2018, private equity firm Vendis Capital came on board. This originally Belgian fund focuses exclusively on companies that make products for the consumer market. Other portfolio companies include the camera stores of Kamera Express and the skincare products of Skins. Strategically, Vendis expands its portfolio companies along three main lines, summarized as the 'Three C's': Categories, Channels & Countries. More countries, more sales channels, and more categories in which the company is active.

With the entry of Vendis and the appointment of a new management team led by Van Keeken, Alpine's position in premium hearing protection has been significantly strengthened. "We have, among other things, become big in America, where we were not previously present. We have made a huge impact there. We have also tapped into new categories, such as more products for those seeking tranquility and products in the field of ear care.

We have significantly accelerated in e-commerce with new systems and a strengthened team with additional expertise in that area. Additionally, efforts have been made to improve sales through traditional channels, such as drugstores. Previously, earplugs were hardly found in a drugstore. When I started, I played a game with my colleagues to see who could find the earplugs first at the drugstore. Today, the drugstore sees it as a serious category with potential and priority. The strategy to sell earplugs at music festivals was also rolled out internationally and expanded to other events such as car races.

The execution of the strategic plans is carried out on one hand by allowing Alpine's business to grow organically, but also by acquiring complementary companies in the same industry. For example, in 2020, Vendis acquired Acoufun to complement Alpine: this French company had built a good reputation and position as a supplier of hearing protection at motorsport events such as the 24 Hours of Le Mans and Formula 1. However, strengthening natural growth has always been the main focus: "We made two acquisitions at the beginning, but have mainly grown organically since then. The focus is on organic growth, where all the opportunities lie."

In addition to financial support, the partnership with Vendis also has other advantages, says Van Keeken: "The advantage of such a network as Vendis is that it includes many similar companies operating in the consumer sector and growing rapidly. Then you notice that you face the same challenges as your fellow CEOs, with whom you can then get in touch; something that Vendis also facilitates well." Van Keeken gives the example of developing and rolling out an e-commerce strategy: "When we started with Alpine, we knew that marketplaces like Amazon were an interesting channel, and to kickstart that, we were then connected to a few good entrepreneurs who already had a lot of traction with Amazon."

A point of focus during the transition to a management team with private equity support is the relationship with the entrepreneurs. In the case of Alpine, Van Keeken worked closely with Peter and Lisette de Roode, who founded the company in 1994, both before and after the acquisition. "During my first six months of onboarding, I collaborated extensively with them, and the founders gradually withdrew from the company. The contact is still very good and pleasant. We still share successes daily. We do this more out of passion than from the company's direction. Alpine is truly a case study of how a transition from the founders can be managed."

In conclusion, Van Keeken notes that Alpine's growth is likely to continue: the macro trend is that hearing protection is becoming increasingly important and the market is far from saturated. In that respect, the company has a healthy long-term perspective. And that, says the CEO, is essentially the art of a good private equity investment: selecting companies that can grow healthily in the long term.