Marantz, a struggling Chatsworth stereo equipment concern, has agreed to be acquired by Chicago-based Dynascan for nearly $15 million, the companies said Wednesday.
The agreement comes as Marantz enters the Christmas season short of both products and credit, Dynascan President Jerry Kalov said. As part of the deal, Dynascan is backing a $3-million letter of credit for Marantz.
Marantz President Fred C. Tushinsky said he decided to sell the company because it was battered by losses resulting from the bankruptcy petition filed by Pacific Stereo, a big customer. Marantz also was hurt by the increased strength of the yen, which raised the cost of Japanese products.
Dynascan, a consumer electronics concern, said it will pay $6 for each of the 2.3 million Marantz shares outstanding. The Tushinsky family now controls Marantz, with a 21% stake.