Marantz and Denon merge

Big news breaks for both the consumer and professional electronics worlds with the merge of these two major players.

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By  Kate Concannon Published  March 7, 2002

Marantz Japan and Denon Inc. today announced they will merge operations with the establishment of D&M Holdings, a joint holding company. Expected to close by May 2002, this merge will represent a powerful leader in premium home theatre and audio-video (AV) development and manufacturing, although the established Marantz and Denon brands will be retained, as well as their unique distribution channels and sales and marketing strategies.

Tatsuo Kabumoto, CEO of Marantz said: “The combination of Denon and Marantz, backed by world class companies like Ripplewood Holdings and Philips, establishes a platform on which we intend to build the world class company in the premium audio visual space. Marantz regards the establishment of D&M Holdings as yet another important strategic step forward for the company following its acquisition of trademark rights and sales subsidiaries operating in Europe and the US from Philips last May.”

Mitsushige Sakamoto, CEO of DENON expressed similar enthusiasm for the merge: “leveraging the synergies of the merger and integrating Denon's digital A/V technology with Marantz’s video and wireless technology, D&M Holdings will secure its position as a leading competitor in the home theatre market.”

The basic terms of D&M Holdings involves some jiggling of titles, and current Marantz shareholders will receive one share of D&M Holdings for each share held. Denon shareholders will receive 0.4416 shares of D&M Holdings for each DENON share. D&M Holdings will head its operations in Sagamihara City, and the company will be listed on the second section of the Tokyo stock exchange.

R&D, financial control, production and purchasing of the two companies will be combined as quickly as possible.

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