Denon Electronics Bought by Mitt Romney Corporation

[admin]

Missed it by that much. D&M Holdings and Bain Capital Partners LLC today announced that they have entered into an agreement, under which Bain Capital Partners will launch a tender offer for all of the shares of D&M Holdings at a price of 510 yen per share of common stock. To most people this will sound like "Denon Electronics purchased by blah blah blah blah blah..." but if you look into Bain Capital you will find that it has Mitt Romney as one of its principle founders back in 1984. We came this close to having a major electronics company at least partially owned by a Presidential Candidate. Bain Capital is also responsible for putting money behind Staples, Clear Channel Communications, Philips, Warner Music Group, Burger King, Home Depot, and Guitar Center (and a whole host of other high profile companies too lengthy to be listed here).

Discuss "Denon Electronics Bought by Mitt Romney Corporation" here. Read the article.

 

[Seth=L]

So now all Denon products can be made in China, great.

 

[mazersteven]

So the question is--Is this a good thing, or a bad thing?

 

[MapleSyrup]

So the question is--Is this a good thing, or a bad thing?

Actually I came around almost 180 degrees to like Mitt as a candidate when he *was* a presidential candidate, at best he's now a vice presidential candidate; no longer seeking the election of President. Being part owner of Denon makes me like him even more now.

I don't understand the misgivings of a "presidential candidate" owning Denon. Kind of a weird remark I'd say.

Vote Romney '08 (if he's the VP choice).

 

[mazersteven]

I couldn't care about the Presidential candidate stuff.

Is this good from Denon?

 

[gene]

I wonder if Mitt is an audioholic?

 

[AcuDefTechGuy]

Bain Capital = American Company (Boston headquarter)
Bain Capital = Own 100% D&M

Perhaps Denon will become a High-End American company where everything will be made in the USA.

I think it's good.

 

[Seth=L]

Bain Capital = American Company (Boston headquarter)
Bain Capital = Own 100% D&M

Perhaps Denon will become a High-End American company where everything will be made in the USA.

I think it's good.

Which brings me to my next topic, don't.. smoke.. crack.

 

[Seth V]

I also think it's good. I was a bit worried a while back when companies like Best Buy and Kenwood were looking to buy D&M. But now I think all is well. At least Denon, Marantz, and the other premium brands under its wing, will not be subjected to any idea of it being cheapened somehow by being owned by other said companies.

It would be nice for Denon to achieve High End status here in the good 'ol USA.

 

[obscbyclouds]

He's a smart guy, and has always done well with his other businesses. There's no reason to believe Denon won't benefit from this.

 

[gus6464]

All those other companies that Bain has poured money into are pretty huge. Of course some are evil (Clear Channel), but some like Guitar Center are awesome. Hell Guitar Center has the same prices in their store as the online only stores like Musician's Friend.

 

[AVTguy]

This could be really awesome for the American Hi-Fi market. If done properly there would be a really incredible group of A/V houses in an all American way.

Gene, you should invite Mitt to become an Audioholics member.

 

[fmw]

I don't think there is much lack of agreement in the industry that both the Marantz and Denon brands have suffered in quality under D&M Holdings. It would seem to me that having a new owner would likely be more positive than negative.

 

[russ_l]

Hey- why is everyone forgetting McIntosh. Macs at half-price maybe?

Russ

 

[m_vanmeter]

here is a link for those who might not realize just how many top audio "names" D&M Holdings actually controlls. I can only hope that a smart outfit like Bain will do much better with the brands than a nearly broke company like BB.

http://www.dm-holdings.com/eng/business/consumer/

press release
http://www.dm-holdings.com/eng/newsrelease/20080620_439.html

 

[MapleSyrup]

The Good

Overall I agree with those who see Bain Capital's purchase of D&M holding's shares over Denon and its "sister" home theater manufacturers. I too am excited to see outstanding products American-owned. Especially now with Denon being the #1 receiver seller in the US, I think Bain's purchase is a step into the right direction. Furthermore, with Romney's name behind it, concerns of Denon being owned by the cheap retails stores like Best Buy should be put at ease, at least in part. bain capital seems to have a solid record of purchasing companies and positioning those companies to expand. as a Denon fan of about seven years running, I'm certainly excited to see this recent purchase.

 

[MapleSyrup]

I wonder if Mitt is an audioholic?

This could be really awesome for the American Hi-Fi market. If done properly there would be a really incredible group of A/V houses in an all American way.

Gene, you should invite Mitt to become an Audioholics member.

Heck, maybe someday Mitt will buy Audioholics.

 

[MicMacPaddyWhac]

Sorry to pee on the premise of Clint's story, but Mitt Romney hasn't had anything to do with Bain Capital since 1998, when he left to head up the Salt Lake City Winter Olympics. You may or may not be horrified to hear that the firm's current leadership group are mostly Democrats.

As far as changes to D&M's business model go, they're likely to be evolutionary. For one thing, they were already owned by another investment group, who managed to put them on a growth trajectory attractive enough for Bain to pay a high multiple. For another, Bain is known for focusing on portfolio management -- running the companies that they own well -- rather than on pure financial engineering to generate returns.

 

[PhilCohen]

I wonder if Mitt is an audioholic?

I don't think that he's a "holic" of anything. He's from Utah,after all.

 

[Seth=L]

Sorry to pee on the premise of Clint's story, but Mitt Romney hasn't had anything to do with Bain Capital since 1998, when he left to head up the Salt Lake City Winter Olympics. You may or may not be horrified to hear that the firm's current leadership group are mostly Democrats.

As far as changes to D&M's business model go, they're likely to be evolutionary. For one thing, they were already owned by another investment group, who managed to put them on a growth trajectory attractive enough for Bain to pay a high multiple. For another, Bain is known for focusing on portfolio management -- running the companies that they own well -- rather than on pure financial engineering to generate returns.

ITT: industry insiders