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Tough economy sidelines D&M Holdings, Planar at CEDIA Expo 2009
If you thought the well-to-do crowd wasn't feeling the pinch from the rotten economy, consider this -- D&M is not going to be at CEDIA Expo 2009 in a couple of months. You know, the show that features pricey, high-end custom install toys. Not being able to get our paws on the latest toys from Denon, Marantz, McIntosh, Boston Acoustics, Snell and Escient breaks our hearts, but D&M has decided to commit its resources to dealer training (and promotions, we hope); all the better to drive new customer sales. To be clear, D&M will have a presence at CEDIA, it just won't be on the Expo floor -- meetings will be by appointment only. We're just keeping our fingers crossed that similar measures won't have to be taken at CES in January. Planar (and by association, Runco) may take a similar CEDIA approach, not entirely surprising given its recent performance.
Snell and McIntosh to share resources without becoming McSnell or SnellIntosh
Not that we could ever afford either brand, but we would have cried if either Snell or McIntosh had been given the axe by D&M Holdings. Instead, the parent company is restructuring things so that the two companies will share resources while still maintaining separate commercial identities -- at least for now. Snell will be getting a brand new facility on McIntosh's campus, and frankly given the ultra-high end markets both brands appeal to, this could be a good union. We've never seen McIntosh speakers in the field, even alongside McIntosh electronics, but we've got a feeling that some Snell models would be right at home in certain posh systems.
D&M Holdings up for sale
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.
