U.S. retailer Best Buy joins race for D&M
TOKYO —
Top U.S. home electronics retailer Best Buy Co has joined the race to buy Japanese audio equipment maker D&M Holdings Inc. Best Buy apparently hopes to improve its competitiveness by bringing D&M, known for high-end brands such as Denon and Marantz, under its wing, sources said.
RHJ International SA/NV, which holds 49% of D&M, conducted a tender for D&M shares in late March and reduced buyer candidates to four—Best Buy, U.S. fund Bain Capital LLC, Japanese fund Advantage Partners LLP and U.S. brokerage house Merrill Lynch & Co.
The four candidates will examine and evaluate the assets of D&M more closely and submit detailed business programs to RHJ. RHJ, formerly called Ripplewood, will conduct a second tender as early as May to finalize the buyer for D&M.
For the year that closed in March, D&M is seen reporting record earnings, with consolidated sales estimated at 108.5 billion yen and operating profit at 6.4 billion yen.
If the buyer acquires all the outstanding shares in D&M, the cost is expected to exceed 50 billion yen.
Best Buy operates some 1,200 stores in the United States. Its sales network also covers Canada and China. The U.S. retailer, which has annual sales of $35.9 billion, is the largest client of D&M.
The world’s largest audio equipment maker, Harman International Industries Inc. of the United States, known for its JBL speakers, was outbid in the first tender.
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GrouchyGaijin
And check with your friends about Best Buy's service and efficiency. In the tank!
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thepossum
Best Buys service and efficiency ?
I found them always to be courteous, helpful, and insightful. I've purchased computers, gaming systems, and stereo equipment at great prices for a good 7 years now. I'd love to see them enter the Japanese market, and I'll bet they will have the same success out of the box that Toys-R-Us had !
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SuperLib
I've always had problems with Best Buy. It's hard to find a salesperson and when you do it's some 17-year old kid who knows nothing about the item you're buying...
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westurn
Gee, I've never had problems with Best Buy. And them 17 year old kids know a whole lot more about computers and stereos than I ever did. I too can't wait to see them enter Japan's market. Maybe they will tone down the noise levels in their stores too. Shopping at LAOX literally gives me a headache !
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GrouchyGaijin
I'll say it again, "Caveat Emptor!"
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SuperLib
Really? I've had problems getting any kind of decent service when buying a PC that I no longer shop for PCs at Best Buy. Maybe it was just the culture of the store that I go to.
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