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Japanese electronics maker Pioneer will sell its audiovisual equipment business to Onkyo and the Baring Private Equity Asia investment fund, as the company is trying to improve its
profitability.
Pioneer, Onkyo and Baring Private Equity Asia have reached a
basic agreement to commence discussions relate to the integration part of Pioneer's Home AV business operations between Pioneer and Onkyo. In addition, part of the 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 a 51% stake in PHE. Pioneer says the remaining 49% will be determined in consultation between the related parties.
Pioneer’s Home Electronics division develops audio and video home theater products including A/V receivers, Blu-ray Disc and DVD players, and speakers.
Pioneer has positioned the car navigation business as a key growth pillar, with the segment accounting for 70% of sales. It had been considering restructuring Pioneer Home Electronics, and held negotiations with Funai Electric and D&M Holdings about a possible sell-off.
Pioneer will work with Onkyo in the areas of product design, component procurement, distribution and sales. The products will continue to be sold under the Pioneer brand.
Onkyo will review its cost structure, including in the area of procurement, by taking advantage of Pioneer's technologies.
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