Tokyo, Japan -- D&M Holdings Inc. (TSE 1:6735) announced today the completion of the acquisition of Calrec Audio Limited of Hebden Bridge, West Yorkshire, England, a leading designer and manufacturer of premium audio products and live-to-air consoles for the broadcast market. The acquisition will be accretive to earnings per share in 2008.
“The acquisition of Calrec is an important step in our stated growth strategy to expand into new markets, specifically commercial audio/visual,” said Chairman and Chief Executive Officer Eric C. Evans. “With Calrec, we‘re adding another premium brand to the D&M family - one that places us firmly in the broadcast market and serves the most prominent customers throughout the world such as the BBC, ITV, NBC, CBS, Fox, MBS and Asahi.”
Calrec‘s primary products are digital audio mixing consoles, analog consoles and audio networking equipment for live production and live-to-air broadcast. Their success is fostered by proprietary technology used in products that can process a large number of 5.1 surround sound channels for HD production. In addition to broadcast, a particularly demanding market where audio quality and performance reliability are critical, D&M Holdings also has targeted expansion in other commercial AV markets such as recording, live music performance venues, film production and public spaces. Commercial AV businesses, including automotive, will account for approximately 25 percent of D&M‘s worldwide revenue in 2007.
“As it has with our other premium brands, the D&M business platform will allow Calrec to continue to perform at the highest levels while staying true to the uniqueness that has led to its past success. By becoming part of D&M, Calrec is better positioned to further develop their technology and expand its global reach,” said Evans. “We‘re taking action today with the acquisition of Calrec and will continue to seek additional opportunities in support of our growth strategy.”
The financial impact of the acquisition will be addressed in D&M‘s fiscal year 2007 full year forecast.