The Japanese market for buyouts is certainly alluring, since there are lots of opportunities to cut costs. But it has been tough for US private equity firms to break in.
But today there was a success: D&M Holdings Inc. agreed to a $470 tender offer from Bain Capital Partners. This is according to a report in The Wall Street Journal.
D&M sells premium and super premium audio and video products, with brands like Denon and Snell. The company got its start in 1910 and has since engaged in a variety of acquisitions, such as for McIntosh Laboratory, Allen&Heath Holdings and Boston Acoustics.
D&M does have an attractive long-term potential. With the surge in wealth in Asian countries, there is likely to be strong demand for D&M products. And, with the financial backing of Bain, there are likely to be more bolt-on acquisitions to enhance the D&M platform.
Tom Taulli is the author of various books, including The Complete M&A Handbook
