TOKYO and PEABODY, MA – 6/9/05 – D&M Holdings Inc. (TSE II: 6735) and Boston Acoustics, Inc. (NASDAQ: BOSA), the premier manufacturer of high-performance audio systems, announced today the signing of a definitive merger agreement for D&M Holdings to acquire Boston Acoustics through its subsidiary D&M Holdings US Inc. D&M Holdings is the owner of Denon, Marantz, McIntosh Laboratory and the D&M Professional, ReplayTV, Rio and Escient brands.
D&M Holdings will acquire Boston Acoustics for $17.50 per share in cash for a total of approximately $76.0 million. This transaction is expected to be immediately accretive to D&M’s earnings upon closing.
Boston Acoustics designs, manufactures, and markets high performance audio products with its signature Boston Sound. Its product categories are Home Speakers and Audio Systems, Speakers and Electronics for the Custom Installation market, All Weather Outdoor Speakers, Speakers and Amplifiers for the Automotive After-market and Systems for the Automotive OEM market. The company’s audio business includes tabletop models Recepter RadioR, Recepter RadioR HD, MicroSystem CD and Home Theater Systems. Boston Acoustics is the market leader for in-wall/in-ceiling speaker systems, and it supplies Boston Acoustics-branded speakers for the Chrysler 300, which is the 2005 Motor Trend Car of the Year, the Jeep R Grand Cherokee, the Dodge Magnum and the Dodge Charger. Boston Acoustics also owns the Snell brand of super premium speakers.
The acquisition of Boston Acoustics provides D&M with a premium speaker line and the ability to deliver customers a complete home entertainment solution. D&M branded products include premium A/V receivers, amplifiers and CD players, DVD players, DLP projectors and display plasma monitors, as well as digital media management systems. The acquisition also gives D&M a strong foothold in the automotive OEM business along with the ability to leverage all five premium brands – Denon, Marantz, McIntosh, Boston Acoustics and Snell – in that business.
Boston Meriidan, LLC an investment bank that specializes in providing merger and acquisition services and raising private capital for growth companies, served as financial advisor and Nixon Peabody LLP served as legal advisor to Boston Acoustics in the transaction. Simpson Thacher & Bartlett LLP served as legal advisor to D&M Holdings.
Boston Acoustics Inc. was founded in 1979 and is located in Peabody, Massachusetts, USA. Fiscal year 2004 revenue was $52.6 million and revenue for the nine-month period of its fiscal year 2005 ending 12/25/04 was $42.8 million.
