Talk about needing a roster to tell the players apart! RHJ International -- which owns some 49-percent of the D&M Holdings hydra (Denon, Marantz, Boston Acoustics, Escient, MacIntosh and Snell) -- has accepted an offer from Bain Capital to the tune of ¥510 ($4.74) per share in a buyout bid. But earlier reports that pinned Kenwood as a partner to Bain in this effort have been denied by Bain. There's some goings-on here, for sure. First, we haven't seen any dealings involving the 12-percent stake that Philips has in D&M. Also, the soon-to-be JVC Kenwood Holdings states that it has not decided on whether it will invest in D&M; which corroborates pretty well with the latest Bain statement that Kenwood is not involved, and there are no ongoing talks of future involvement. Corporate squabbling and conspiracy theories aside, we just hope that the D&M brands come out unscathed.

Every bean-counter knows that falling prices and shrinking margins add up to one thing - cost-cutting pressure. Now we get word that JVC and Kenwood are merging underneath a single holding company, aptly named JVC Kenwood Holdings. Hopes are high for the new company, with plans to quadruple profit in three short years by focusing on car and home audio. Expect to see more of this kind of merger/acquisition activity, especially among small- to medium-sized companies as more competition -- especially from South Korea and China -- ramps up. Every JVC share will be exchanged for two shares in the new company, while Kenwood stock will get a 1-for-1 rate. JVC definitely got the better end of the deal, with JVC's president continuing on in that role with the new company. It will be interesting to watch how this might affect Kenwood/Bain Capital bidding for D&M Holdings.

EDIT: the new company will be called JVC Kenwood Holdings, not JVC Holdings. - Thanks, dcny!

Amidst recent news about D&M Holdings being sold off, principal shareholder RHJ International has stated that 30 layoffs at Boston Acoustics are an unrelated happenstance. It's unfortunate timing, to be sure, but RHJI spokesman Gail Petersen has stated that acquisition preparation was "absolutely not a factor," and cited a decrease in new Boston Acoustics product development this year and increases in efficiency amongst companies folded into D&M holdings as reasons for trimming rolls. Whether it's coincidence or causality (if it's coincidence, it's an awfully common one), it should all get wrapped up soon -- word is that bidding between Merrill Lynch, Best Buy, Advantage Partners, and Kenwood/Bain Capital should end soon.


Read - Boston Acoustics Cuts 30 Employees
Read - Interview with RJHI's Gail Petersen

While the roster of storied high end names is pretty long, don't think for a minute that the blue-blood part of the market has not experienced consolidation. D&M Holdings is a prime example of this: D&M's owner, RJH International, has managed to fit Denon, Marantz, McIntosh, Boston Acoustics, Snell and Escient under one umbrella over the years. And now RJH is looking to cash in on the concentrated dollop of high end, offering up 49-percent of its shares in D&M. Philips has agreed to offer its12-percent stake to a winning bidder as well. Our math tells us that's more than a controlling percentage. Harman International, apparently satisfied with its own high end roster (including Harman Kardon, Infinity, Revel and Mark Levinson), has bowed out of bidding. That leaves Bain Capital (Kenwood) and Best Buy as the most prominent bidders, both of which scare us a little. One of the things we really enjoy about the D&M brands is the individual "personalities" behind them, and that's a credit to the management overlords. There's no guarantee that this variety of flavor will survive an en masse transition to new ownership.