JVC and Kenwood to Wed
Look, even the red triangle matches up!
Two electronics giants, Kenwood and JVC, have combined to form a holding company focused on car and home audio electronics. The new company, uniquely entitled JVC Kenwood Holdings, hopes to increase their operating profits up to four times in the next three years. Victor Co. of Japan (JVC) under the new deal owns two shares for every one share by Kenwood Corp. investors.
Kenwood's owner, Bain Capital, was recently in the bidding for D&M Holdings, the owner of Denon, McIntosh, Marantz, and others. While no word has surfaced about the outcome of that deal, it seems that Kenwood is getting out of your car and into your living room any way possible. Since labor costs in China and South Korea have dropped prices (and lowered profit margins), many electronics manufacturers are consolidating to remain viable.
Kenwood has long been a player in the auto market while JVC has been truly powerful in the home. Together, they hope to expand their market presence (and therefore profits) considerably. JVC Kenwood Holdings will be officially created on Oct 1st.
