D+M Group is the largest supplier of audio/video receivers worldwide. When it launched HEOS by Denon, it entered the wireless multiroom audio category with its own proprietary platform.
Sound United is a large supplier of loudspeakers in North America serving the custom installation and retail markets.
The combined company will be known as Sound United, and the combined resources of the brand will provide Sound United with synergistic opportunities for the existing core businesses, while opening up the potential to expand the product portfolio and market reach. The sale was finalized on February 28, 2017, and the terms of the sale were not disclosed.
Kevin Duffy, CEO of Sound United, will serve as CEO of the combined company.
“Sound United and the D+M Group employees share a culture of innovation and customer focus,” says Duffy. “We plan to leverage those core values in the combined company in order to offer consumers and our channel partners a breadth of complementary products while expanding our investments in technology development and marketing.”
“We welcome the addition of the D+M team and are excited to work together to ensure that this strategic combination capitalizes on its global leadership position while also ensuring that each of our individual brands continues to be highly differentiated in the marketplace,” Duffy continues. “Our existing customers and channel partners will benefit from the enhanced breadth and depth of the combined product portfolio, while our strategic suppliers should be well-positioned to expand with us as we grow.”
Jim Caudill, CEO, D+M Group, will serve as an advisor to the consolidated company. Caudill says the combined power of these brands will foster new opportunities for Sound United to grow its business.
“This transaction is a testament to D+M Group’s employees and exceptional brands and all that we’ve accomplished in the audio industry,” says Caudill. “By joining Sound United, we expect to deliver tremendous value to our customers through access to Sound United’s aspirational speaker brands including Polk Audio and Definitive Technology. We believe that this transaction will drive compelling opportunities for our employees, customers, and suppliers, and are looking forward to ensuring the success of the new organization.”
Sound United is a division of DEI Holdings, a portfolio company of Boston-based private equity firm Charlesbank Capital Partners, LLC.
Charlesbank acquired DEI Holdings in 2011, and Ryan Carroll, managing director, Charlesbank, says the acquisition provides Sound United with an influx of enthusiasm to help the newly combined companies in building a strong future.
“We are delighted to support the expansion of Sound United and to help bring together two leading companies in their respective categories,” asserts Carroll. “We look forward to a successful integration building on the cultural similarities, talent, and best practices of these two companies and to a stronger future as one entity.”