Bain Capital to buy Denon and Marantz maker D&M Holdings

US private equity firm Bain Capital Partners LLC is acquiring a 48.5-per cent stake in the Tokyo-listed maker of the Denon and Marantz audio equipment  range, D&M Holdings Inc, from Ripplewood Holdings LLC's Brussels-listed fund RHJ International SA. ¥48 billion  (approximately $445 million / Rs1,872 crore).

D&M  had sales in the year ended March of ¥112 billion and Ebitda of ¥9.9 billion.

Bain plans to make a tender offer for the outstanding shares at ¥510 per share, an 8.5 per cent premium to D&M's Thursday's closing price of ¥470. This price represents a premium of 37.1 per cent over the average closing share price in the six months prior to 19 June 2008, and a premium of 68.9  over the unaffected closing share price on 23 January 2008, the day prior press reports speculation on the potential stake change.

Bain will receive ¥70 billion in loans from banks including Morgan Stanley, France's Société Générale SA, as well as from Japan's Aozora Bank Ltd., Mizuho Corporate Bank Ltd. and Shinsei Bank Ltd to finace the transaction.

RHJ International, which took over Japanese assets from Ripplewood, plans to sell its stake once Bain Capital launches its takeover bid.

Announcing the D&M sale along with the disposal of a minority stake in an unidentified company active in a related sector, RHJ said the disposals will generate cash proceeds of ¥32.1 billion ($297.8 million) and yield a net capital gain of ¥15.8 billion. RHJ said it may invest the proceeds in the financial services sector.