Financial terms of the acquisition were not disclosed.
McIntosh, a 53-year-old company based in Binghamton, N.Y., designs and manufactures high-end audio, home theater and car audio products and has annual revenue of approximately $25 million. Thefinancial 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: â€œMcIntosh is one of the most highly acclaimed brands in the world. The company is revered by audiophiles and has aloyal customer base. In addition, McIntosh brings to D&M an exclusive worldwide dealer network that will yield synergies with our current distribution channels.â€ This acquisition is consistentwith the company’s strategy to consolidate the 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 andMarantz.
Commenting on the transaction, McIntosh Laboratory President Charles M. Randall said: â€œWe are extremely excited about the opportunity to join forces with Denon and Marantzâ€”two of the industry’spremier audio/video brands. Both companies have long and well-respected records in the industry, and all three brands will continue to deliver the highest-quality products in their respectiveniches.â€