|D&M Holdings Inc, parent company of Denon, Ltd. and Marantz Japan, Inc., announced that it has agreed to acquire McIntosh Laboratory, Inc., a leader in home entertainment systems, from Clarion Corporation of America, a subsidiary of Clarion Co. Ltd..
Financial terms of the acquisition were not disclosedMcIntosh, a 53-year-old company based in Binghamton, N.Y., designs and manufactures high-end audio, home theatre and car audio products. The McIntosh brand has a well-known reputation for quality, high performance, hand craftsmanship and customer support and service. McIntosh has annual revenue of approximately $25 million. The financial impact on D&M Holdings is not expected to be material in fiscal 2002 ending on March 31, 2003, but it is expected to be accretive in fiscal 2003.
Tatsuo Kabumoto, president and chief executive officer of D&M Holdings, said: "McIntosh is revered by audiophiles and has a loyal customer base. In addition, McIntosh brings to D&M an exclusive worldwide dealer network that will yield synergies with our current distribution channels." This acquisition is consistent with the company's strategy to consolidate the premium audio/video industry through acquisitions.
The McIntosh brand, along with its sales and marketing operations, will be maintained as a stand-alone operation, following the same strategy employed by D&M Holdings with Denon and Marantz.
Commenting on the transaction, McIntosh Laboratory President Charles M. Randall said: "We are extremely excited about the opportunity to join forces with Denon and Marantz-two of the industry's premier audio/video brands.."