|Marantz To Merge with Denon|
|Home Theater News Industry-Trade News|
|Written by Scott Selter|
|Friday, 15 March 2002|
Marantz To Merge with Denon
Marantz Japan Inc., its largest shareholder (49%), Royal Philips Electronics, and Denon, Ltd., its largest shareholder (98%), Ripplewood Holdings L.L.C. today announced the establishment of D&M Holdings Inc. a joint holding company, to merge the operations of Marantz and Denon, two leading companies in the specialist home entertainment products market.
The transaction is expected to close by May 2002 and will reportedly leverage the strengths of both companies while maintaining the identities of the Marantz and Denon brands.
Under D&M Holdings, Marantz and Denon will maintain operations as distinct brands, with separate product lines and distribution channels. Under the ownership of D&M Holdings, it is expected that the two companies will benefit from the integration of procurement, manufacturing, engineering, administrative and other business activities.
In an increasingly competitive consumer based AV electronics market, this deal has lots of upside for both companies including many levels of economies of scale. Marantz has a video lineup that would be hard for Denon to compete with. Marantz also has made significant strides in distributing AV gear to custom AV dealers and installers when Denon is more aligned with larger retailers thus the lines shouldn’t conflict in the AV marketplace. Denon brings needed financial stability to Marantz who mostly parted ways with Philips last year. Especially considering the current US and Japanese recessions, this move is a significant one towards preserving Marantz’s industry position and also helps Denon in areas of the AV industry that they are not in at all – like video.
Visit Marantz America on the World Wide Web at www.marantz.com