Pioneer Selling Most of A/V Business to Onkyo, Private Equity Firm
Pioneer has agreed to sell the majority of its home/AV business, to both a Hong Kong private equity firm and to Onkyo.
According to the Wall Street Journal, the complicated transaction will have Pioneer selling a 51 percent stake to Baring Private Equity Asia. The remaining interest will be split between Pioneer itself and Onkyo. Pioneer and Onkyo will remain separate brands.
The statement issued by the parties said:
Pioneer Corporation, Onkyo Corporation and Baring Private Equity Asia have reached a basic agreement to commence discussions with an eye to integrating a part of Home AV business operations between Pioneer and Onkyo. Also, a portion of shares in Pioneer Home Electronics Corporation, a wholly-owned subsidiary of Pioneer, will be transferred to Baring and Onkyo. After the transfer, Baring will have 51% stake in PHE. The remaining 49% will be determined in consultation between the related parties.
The deal is expected to close in August.