Sound United, the parent company to Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé, and Boston Acoustics, has announced that it has entered into a term sheet agreement to acquire Onkyo Corporation’s consumer audio division, including the Onkyo, Pioneer, Pioneer Elite, and Integra brands.
The preliminary agreement will enable both companies to quickly proceed with negotiations of definitive terms and agreements.
Kevin Duffy, current CEO for Sound United, will be CEO of the newly combined businesses. The transaction reflects a continued focus by Sound United to meet consumer demand for the best-sounding and most technologically advanced audio products available. The expanded brand portfolio will allow Sound United to better serve consumers with premium products tailored to their specific needs.
Said Mr Duffy: “We are thrilled by the opportunity to add the venerable Onkyo and Pioneer brands to our portfolio. Sound United is one of the leading dedicated providers of premium audio/video products, and we believe the combined businesses will bring unrivaled innovation and sound performance to our consumers and channel partners.
“Upon completion of the transaction, we will work tirelessly with the consumer audio division of Onkyo Corporation to ensure a seamless transition into the Sound United family so that all employees, customers and channel partners benefit from the enhanced breadth and depth of the new organisation.”
As one of the leaders in the fast-growing wireless, voice-enabled speaker and soundbar categories, Sound United said it is eager to invest in the development of new products with the added benefit of Onkyo and Pioneer’s extensive legacy of innovation. This expanded scope will also offer manufacturing efficiencies, expedited development cycles and a combined business better positioned to invest in the future of the premium audio category.
The Onkyo Corporation’s consumer audio division includes product categories such as: AV receivers, hi-fi equipment, mini-systems, smart speakers, turntables, soundbars, home cinema systems, optical disc players and many others. Onkyo Corporation will retain the rights to the Pioneer and Onkyo brands for the purposes of their Digital Life and Embedded Audio businesses.
Despite the planned acquisition, distribution arrangements will remain the same in Europe and the USA, with Aqipa continuing to distribute Onkyo and Pioneer products in Europe.
The completion of the transaction is subject to various normal-course conditions precedent, including approvals from regulators and the Onkyo Corporation’s shareholders at the Annual General Meeting, expected to be held on or about June 26, 2019.”
