D+M Group (formerly D&M Holdings), continues their program of divesting businesses it determines are “non-core” to the company’s central focus on the consumer-based Denon, Marantz and Boston Acoustics brands. This week, we learned that the company has cut a deal to license the professional products businesses done under both the Denon and the Marantz brand names to inMusic Brands, Inc.. This move closely follows the announcement last month that the company was selling off the Calrec Audio business to Electra Parters.
See more on this new but not particularly surprising development…
With this deal, inMusic Brands adds the Denon Professional, Marantz Professional, and Denon DJ brands to its growing stable of pro and DJ-centric lines. The company currently offers Akai Professional, Alesis, Alto Professional, ION Audio, Numark, M-Audio, AIR Music Technology, and Mixmeister. The company’s website discusses the management’s strategy of “turnaround” brands – picking up wayward brands and reinvigorating their businesses.
Although details are sketchy, the official announcement termed this deal a licensing agreement. We’ve seen several articles saying D+M Group sold off D&M Professional, but that would appear to be incorrect.
“By adding Denon Professional, Marantz Professional, and Denon DJ to our family of brands, we’re strengthening our base of DJ assets while extending our footprint in the professional market to the commercial installation and contractor segments,” said Jack O’Donnell, owner and CEO of inMusic in a prepared statement. “We’re excited about the product and technologies developed by these established brands, and look forward to writing the next chapter in the D&M Pro story by creating new, innovative products for Denon Professional, Marantz Professional, and Denon DJ customers.”
Last month, when D&M Holdings announced it had sold off the Calrec Audio brand, D+M’s CEO Jim Caudill was pretty open in identifying other company properties he considered non-core – saying the company was weighing its options with these properties. Specifically, Caudill mentioned the division known as D&M Pro, which includes pro products sold under the Denon brand and under the Marantz brand. Caudill also mentioned the automotive OEM business…which is also part of the D&M Pro division.
But a complicating factor in selling off the D&M Pro business is that they utilize, and potentially impact, the consumer businesses which carry the same brand names. This can cause potential conflicts as a new owner is free to do as they please with their purchase. By licensing the Pro division, D+M Group retains a degree of control over how those brands can be used, as licensing agreements give the licensor certain rights to what types of products can carry the brand name.
“We are pleased to have reached an agreement with inMusic to license the rights to the D&M Pro brands as this is another step in our strategy to continue focusing on our core consumer brands,” said Jim Caudill, CEO at D&M Holdings in the same statement. “We are confident that inMusic will bring the required focus and investments to accelerate the growth of theses well respected brands.”
To learn more about inMusic, see: www.inmusicbrands.com.
See more on the D+M Group at: www.dmglobal.com.