Sound United acquires D+M Group
WORLD: Sound United LLC has confirmed the completion of its acquisition of the D+M Group. The D+M Group is reportedly the largest supplier of A/V receivers globally and also specialises in wireless multi-room audio, while Sound United lays claim to the title of ‘largest supplier of loudspeakers in North America’.
The acquisition includes D+M Group’s brands, Denon, HEOS by Denon, Marantz and Boston Acoustics. Sound United already serves as the parent company to brands such as Polk Audio, Definitive Technology and Polk Boom. The combined brands will operate under the Sound United banner.
Pagemill Partners, a division of Duff & Phelps, served as D+M Holdings’ financial advisor during the acquisition process, while Davis Polk & Wardwell was its legal counsel. Sound United employed Goodwin Procter as its legal counsel.
‘Sound United and the D+M Group employees share a culture of innovation and customer focus,’ said Sound United CEO, Kevin Duffy. ‘We plan to leverage those core values in the combined company in order to offer consumers and our channel partners a breadth of complementary products while expanding our investments in technology development and marketing.
‘We welcome the addition of the D+M team and are excited to work together to ensure that this strategic combination capitalises on its global leadership position while also ensuring that each of our individual brands continues to be highly differentiated in the marketplace,’ Mr Duffy continued. ‘Our existing customers and channel partners will benefit from the enhanced breadth and depth of the combined product portfolio, while our strategic suppliers should be well-positioned to expand with us as we grow.’
‘This transaction is a testament to D+M Group’s employees and exceptional brands and all that we’ve accomplished in the audio industry,’ stated D+M Group CEO Jim Caudill, who will continue as an advisor to the consolidated company. ‘By joining Sound United, we expect to deliver tremendous value to our customers through access to Sound United’s aspirational speaker brands including Polk Audio and Definitive Technology. We believe that this transaction will drive compelling opportunities for our employees, customers, and suppliers, and are looking forward to ensuring the success of the new organisation.’
Sound United itself is a division of DEI Holdings, which in turn is a portfolio company of private equity firm Charlesbank Capital Partners, LLC. ‘We are delighted to support the expansion of Sound United and to help bring together two leading companies in their respective categories,’ commented Ryan Carroll, a managing director at Charlesbank. ‘We look forward to a successful integration building on the cultural similarities, talent, and best practices of these two companies and to a stronger future as one entity.’