Today I found this press release in my mailbox. It announces that both Marantz and Denon are likely to merge to a new company called D&M Holdings.
The companies expect their new company will be well positioned to benefit from this organic growth through the advanced development of cutting-edge digital products by matching DENON and Marantz's expertise in digital AV and visual products as well as wireless technology. Also finanicially the companies should become more stable:
Marantz Japan Inc., its largest shareholder (49%), Royal Philips Electronics (AEX : PHI, NYSE: PHG), 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. The transaction is expected to close by May 2002 and will create a global leader in the premium home theatre and audio-video (AV) market, while maintaining the established Marantz and DENON brands. D&M Holdings will employ approximately 1,650 people around the world and will succeed Marantz as a publicly traded concern on the Second Section of the Tokyo Stock Exchange (TSE II: 6799). |
Both DENON and Marantz are leading branded manufacturers of premium home theatre and AV products. This market has enjoyed rapid growth in
recent years, due to the emergence of home theatre applications as well as an industry wide digital evolution. D&M Holdings will be well
positioned to benefit from this organic growth through the advanced development of cutting-edge digital products by matching DENON and
Marantz's expertise in digital AV and visual products as well as wireless technology. Moreover, Marantz and DENON expect to achieve a
significant improvement in margins and cash flow by maximizing the synergies of the integrated operations.
I don't know if there are many CD Freaks who currently have any products of these companies, but they are known for high quality products and they are also pretty expensive.
This merge could however improve their products even more, because they can share their knowlegde.
Source: CD Freaks.com
