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JUNE 2008 W4 SPECIAL ALERT Kenwood Clarifies Connection to D&M AcquisitionBusiness tie-up may lead to further partnership<Nikkei-TOKYO><Reuters><June 20, 2008>Kenwood Corp. told the Nikkei on Friday that it will form a partnership with D&M Holdings Inc. in a tie-up focused on the car electronics business. As part of this new relationship, Kenwood will invest as much as ¥1 billion ($9.3 million) into D&M Holdings, which has just agreed to be acquired by  Bain Capital Partners, LLC.
This partnership will, in effect, be a three-way relationship as Kenwood is in the process of combining its operations with Victor Company of Japan Ltd. (JVC) in a merger expected to be completed by October 1, 2008. Kenwood had already announced in October 2007 that it would create a joint R&D facility with JVC to develop new car electronics products.
D&M, which owns several upscale brands, maintains a significant position in the car audio business and it is for this reason Kenwood sees a potential opportunity to partner with them in a development pact. If the partnership with D&M shows signs of early success, Kenwood has indicated that it would consider further investment into the partnership.
The Nikkei story appears to be the first official word from Kenwood officials commenting on what had been a widely reported cooperation between Kenwood and Bain as part of its D&M acquisition. The story sought to clarify Kenwood’s role in the Bain/D&M transaction and suggests that Kenwood’s participation may be less than press reports originally suggested.
In a separate story, Kenwood spokesman Takaaki Nose told Reuters that Kenwood was “still interested in a business alliance with D&M but that nothing has been decided.” Nose went on to say that Kenwood “was not in talks with Bain regarding the buyout.”
Kenwood’s focus now, Nose said, is on completing their merger with JVC. |
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