Today, Sound United (Polk Audio, Definitive Technology, and
Polk Boom) announced that it has acquired D+M Group, owner of HEOS by Denon,
Marantz, and Boston Acoustics. Their news release is included at the bottom of
this post, and covers all details of the acquisition.
What you’re probably wondering is, “How will this affect the
consumer?” To summarize, the combination of the two companies will offer
several benefits as research and development moves forward under a larger
umbrella. The combined company will include some of the most legendary, well-known
brands in home audio, and now those brands will have the opportunity to work
together. Simply put, Sound United will be able to offer a larger range of
products under each brand, and improve on value, performance, and compatibility
between brands. We are likely to see new technologies emerge and develop across
Sound United’s brands. The synergy of the two companies is likely to strengthen
all brands involved.
Overall, the scope of the announcement appears quite
positive. We can expect that the combined efforts of these home audio powerhouses
will bring innovation to upcoming product lines from all brands involved. Read
all about the merger at www.soundunited.com,
or see Sound United’s comments below.
Sound United’s Announcement:
Vista, Calif. (March 1, 2017)— Sound United LLC, parent
company to Polk
Audio, Definitive Technology, and Polk BOOM, today announced it has completed
the acquisition of the D+M Group, owner of the Denon, HEOS by Denon, Marantz, and Boston Acoustics brands. The
D+M Group is the largest supplier of audio/video receivers worldwide and a leader
in wireless multi-room audio. Sound United is the largest supplier of
loudspeakers in North America and a leading supplier of sound bars and wireless
music systems. The combined company will be known as Sound United, which will
own and operate some of the most prestigious brands in the consumer audio
space, providing synergy opportunities for the existing core businesses, while
also unlocking the potential to expand the product portfolio and market reach.
The sale was finalized on February 28, 2017 and the terms of the
sale were not disclosed.
Kevin Duffy, CEO of Sound United,
will serve as CEO of the combined company moving forward. “Sound United and the
D+M Group employees share a culture of innovation and customer focus. We plan
to leverage those core values in the combined company in order to offer
consumers and our channel partners a breadth of complementary products while
expanding our investments in technology development and marketing,” said Duffy.
“We welcome the addition of the D+M team and are excited to work together to
ensure that this strategic combination capitalizes on its global leadership
position while also ensuring that each of our individual brands continues to be
highly differentiated in the marketplace. Our existing customers and channel
partners will benefit from the enhanced breadth and depth of the combined
product portfolio, while our strategic suppliers should be well-positioned to
expand with us as we grow.”
D+M Group CEO Jim Caudill, who
will continue as an advisor to the consolidated company, added, “This
transaction is a testament to D+M Group’s employees and exceptional brands and
all that we’ve accomplished in the audio industry. By joining Sound United, we
expect to deliver tremendous value to our customers through access to Sound
United’s aspirational speaker brands including Polk Audio and Definitive
Technology. We believe that this transaction will drive compelling
opportunities for our employees, customers, and suppliers, and are looking
forward to ensuring the success of the new organization.”
Sound United is a division of DEI
Holdings, a portfolio company of Boston-based private equity firm Charlesbank
Capital Partners, LLC. Charlesbank acquired DEI Holdings in 2011. “We are
delighted to support the expansion of Sound United and to help bring together
two leading companies in their respective categories,” said Ryan Carroll, a
Charlesbank Managing Director. “We look forward to a successful integration
building on the cultural similarities, talent, and best practices of these two
companies and to a stronger future as one entity.”
Pagemill Partners, a division of
Duff & Phelps, acted as financial advisor to D+M Holdings. Goodwin Procter
acted as legal counsel to Sound United, and Davis Polk & Wardwell acted as
legal counsel to D+M Holdings. For more information on Sound United, please
visit www.soundunited.com. To learn more about the D+M Group, visit www.dmglobal.com/home.