Deal Watch: Allegro Music plays for keeps

| Print |  Email
Archives - July 2009
Tuesday, June 23, 2009
cds If you think digital downloads have killed the audio CD, you haven’t talked to Rico Micallef, president and chief operating officer of Allegro Music Group.

“The music industry is actually doing very well,” he says. “The traditional products being sold in traditional ways may be having a tough time, but the alternative markets are doing just fine.”

Micallef is talking about the markets that the Portland distributor of music CDs, DVDs and audio books is after: independent bookstores, toy shops and, with its recent acquisition of Music Design, New Age stores.

“These are the places that you don’t normally go to buy your music, where it’s more of an impulse buy,” says Micallef, who bought Allegro with his two brothers back in the late 1980s.

The acquisition of Music Design, a Milwaukee, Wisc.-based distributor of relaxation music and self-help CDs, will give Allegro a lock on the genre, Micallef says. The company employed a similar strategy to sew up the children’s music market when one of its subsidiaries acquired the distribution assets of Rounder Kids in 2007.

Some of Music Design’s backroom operations will be consolidated at Allegro’s Portland headquarters, though sales and other functions will stay in Wisconsin.

Although most of its business involves CDs and DVDs, Allegro does have a solid digital presence as well; customers include iTunes, Rhapsody and eMusic. But while Allegro is likely to continue adding to its digital offerings, Micallef says the company’s focus will remain on its core offerings — CDs, DVDs and audio books — in the genres it knows best, like classical, jazz, blues and world music.

“We’re always looking for content and opportunities that we can take advantage of in the genres we’re in,” he says.

Barring a major acquisition, that means no hip hop from Allegro anytime soon.
List researched by Jon Bell
REAL ESTATE TRANSACTIONS
PRICE BUYER / PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) ANNOUNCED
$2M Kesey Enterprises (Eugene) Quarter-block parcel (Eugene)/Geiger Investments (Eugene) 5/1
$1.1M 434 Investors (Portland) O'Shea Building (Portland)/Hat Creek Cattle Co. (Portland) 5/29
$890,000 Primo Williams (Portland) 7,200 sq. ft. industrial (Portland)/Anthony Catalan (Portland) 5/12
$850,000 Charles Padot (Newberg) Typres Gardens Apartments (Newberg)/Carol Hilterbrand estate 5/25
$535,600 JR Merit Investments (Vancouver) 46,481 sq. ft. industrial (Vancouver)/Genteel Investments (WA) 5/20
$283,000 Nathan Tolman (Lebanon) 20,500 sq. ft. land (Lebanon)/D&D Lebanon (Lebanon) 5/20
ND Domain Meriwether (Veneta) 54-acre vineyard (Veneta)/Secret House Vineyards (Veneta) 5/20

CAPITAL RAISING
PRICE (TYPE) COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) ANNOUNCED
$250M (surveillance drone contract) Insitu (Bingen, WA)/Steve Silwa U.S. Special Operations Command (FL) 5/22
$50M (chip sale) TriQuint Semiconductor (Hillsboro)/Ralph Quinsey ZTE (China) 5/7
$32M (stimulus light rail funds) TriMet (Portland)/Fred Hansen Federal Transit Administration 5/8
$26M (streetcar order) United Streetcar (Clackamas)/Chandra Brown City of Tucson, AZ 5/27
$20M (broadband funds) Oregon Health Network (Lake Oswego )/Kim Lamb Federal Communications Commission 5/29
$18M (bridge contract) Kodiak Pacific (Tualatin)/Sandra Trainor Federal Highway Commission and ODOT 5/8
$10M (tax credits) Albina Bank (Portland)/Robert McKean U.S. Treasury Dept. 5/27
$9.5M (bridge work contract) Kerr Contractors (Woodburn)/Brent Kerr Oregon Dept. of Transportation 5/4
$8.3M (state and federal transportation funds) Lane Transit District (Eugene) Federal Transit Administration, State of Oregon 5/27
$6.4M (federal disaster relief) Oregon fishing industry Pacific States Marine Fisheries Commission (Portland) 5/1
$5M (highway work contract) Pioneer Construction (Pendleton)/Terry Clarke Federal Highway Commission and ODOT 5/6
$4.8M (storm water system contract) JE Dunn Northwest (Portland)/Frederick Shipman Port of Portland 5/13
$4.6M (highway work contract) Hooker Creek Companies (Bend)/John Fournier Federal Highway Commission and ODOT 5/5
$1M (fencing contract) Town & Country Fence Co. of Oregon (Clackamas)/Dennis Fleck Oregon Dept. of Transportation 5/12
$1M (Willamette Falls locks repair contract) Triad Mechanical (Portland)/Nicholas Scovill U.S. Army Corps of Engineers (Portland) 5/6
$643,000 (road resurfacing contract) LTM (Medford)/Robert Vaughn Dept. of Veterans Affairs (WA) 5/22
$634,000 (truck contract) Gerlinger Carrier (Salem)/Mark Lyman U.S. Navy 5/20
$435,000 (rock wall repair contract) Big River Construction (Astoria)/Michael Sarin Oregon Dept. of Transportation 5/5
$160,000 (support services contract) NH Engineering (Vancouver)/Nick Haluschak U.S. Fish & Wildlife Service (Portland) 5/29
$125,000 (investment prize) CenterSpace Software (Corvallis)/Trevor Misfeldt Willamette Angel Conference 5/20
ND (emergency food supplies contract) Truitt Bros (Salem)/Peter Truitt Stanford University (CA) 5/8
ND (mail order pharmacy contract) Wellpartner (Portland)/Michael Wright Oregon Health Plan 5/19

MERGERS AND ACQUISITIONS
PRICE EXP. CLOSE BUYER / PARENT (HQ) SELLER / PARENT (HQ) ANNOUNCED
$13M Q3 Mentor Graphics (Wilsonville) LogicVision (CA) 5/7
$2M Q2 Northwood Manufacturing (La Grande) Fleetwood Enterprises (La Grande) 5/9
$500,000 Q2 LaCrosse Footwear (Portland) Environmentally Neutral Design (Portland) 5/8
ND Q2 Allegro Media Group (Portland) Music Design/Virgin Records America (NY) 5/21
ND Q3 PacificSource Health Plans (Eugene) Primary Health (ID) 5/27

 

More Articles

The Good Hacker

May 2015
Friday, April 24, 2015
BY CHRIS HIGGINS

As digital security breaches skyrocket, a cybersleuth everyman takes center stage.


Read more...

Man for All Seasons

May 2015
Monday, April 27, 2015
BY LINDA BAKER

A longtime technologist and entrepreneur, Dwayne Johnson, 53, is managing partner of PDXO/GlobeThree Ventures, a strategy and business consultancy in Portland.


Read more...

Foundations perspective

May 2015
Monday, April 27, 2015
BY KIM MOORE

A conversation with Martha Richards, executive director of the James F. & Marion L. Miller Foundation.


Read more...

Photo Diary: Forest Grove Farmers Market

The Latest
Thursday, May 14, 2015
IMG 8469BY JASON E. KAPLAN | STAFF PHOTOGRAPHER

There are more than 160 farmers markets in Oregon, contributing an estimated $50 million in sales, according to the Oregon Farmers Markets Association. We checked in on the Forest Grove market, which for several years has brought local produce and food vendors to Main Street in the center of town.


Read more...

5 questions for Flywheel CEO Rakesh Mathur

The Latest
Wednesday, April 29, 2015
FW splashBY JACOB PALMER | DIGITAL NEWS EDITOR

Portland is awash in rideshare options. We ask the head of Flywheel what sets his app apart.


Read more...

Oregon Business expands events portfolio

The Latest
Friday, March 27, 2015
htctfacebookBY OB STAFF

New events series brings magazine to life.


Read more...

Celestial Eats

May 2015
Monday, April 27, 2015
BY JACOB PALMER AND EILEEN GARVIN

A power lunch at Solstice Wood Fire Cafe & Bar.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS