Japanese brand Pioneer has agreed to sell its DJ equipment business to global investment firm KKR for US $551 million (~AU $606.8 million). Currently it is ‘business as usual’ for Pioneer in Australia with the deal expected to be finalised by March 2015.
Pioneer will retain a 15 per cent stake in the DJ equipment business which develops, manufactures and sells equipment for DJs, including DJ players, mixers, controllers, headphones and speakers. The new company will keep the established Pioneer name and has been provisionally branded Pioneer DJ.
The focus for Pioneer will be on its car electronics business which makes products such as in-car entertainment and navigation units.
Susumu Kotani, representative director, president and CEO of Pioneer said the business has been seeking a partner with the financial resources and know-how to achieve further growth for the DJ equipment segement.
“We are pleased to have reached an agreement with KKR on the purchase of Pioneer DJ. KKR has a wealth of experience in the technology and media industry globally, and we are confident it has the expertise to drive Pioneer DJ forward.
“Pioneer will retain 14.95 per cent of the voting rights in Pioneer DJ and we will maintain a framework for cooperation to ensure the future growth of the company,” Kotani said.
Hirofumi Hirano, member of KKR and CEO of KKR Japan said, “Pioneer has built a leading global DJ equipment business based on its powerful brands and excellence in matching product development to market requirements. KKR will work together with Pioneer DJ’s innovative management team and employees, and our investment partner Pioneer, to support further long‐term growth of the business.”
KKR’s global investment activities support the growth of businesses in a range of industries, said Yoshiaki Ide, executive officer and Division Chief Officer of Pioneer’s Pro. Sound & Visual Business Division.
“As such, we believe this partnership will enable the further expansion of our own business. With KKR’s support, Pioneer DJ aims to add further customer value and exceed expectations with accelerated product development and enhanced service. In addition, Pioneer, as an important shareholder, will provide ongoing support,” Ide said.