The Japanese market for buyouts is certainly alluring (basically, there is lots of opportunity 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 LLC. This is according to a report in the Wall Street Journal (subscription required).
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. After all, 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 acquisitions to enhance the D&M platform.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Stock picks and pans for troubled times: RIMM, ED, ISRG, GLW, LEA, SLB, GOOG ...
Is Berkshire Hathaway better than S&P Index?
Closing Bell: Torch Passing on a Friday Rally
Reader Comments (Page 1 of 1)
6-20-2008 @ 4:16PM
Speculator said...
The reason you see a ton of private equity in Japan is a lot of companies don't have a high return on equity. So the return is less when load them up with debt and sell them.
www.theinvestingspeculator.com