Published on May 15th, 2019 | by The GC Team0
Denon parent to acquire Onkyo Corporation consumer audio division
Sound United, which acquired the D+M Group, owner of the Denon, HEOS by Denon, Marantz and Boston Acoustics brands in 2017, is looking to expand its portfolio yet again with the acquisition of Onkyo Corporation’s consumer audio division, which comprises the Onkyo, Pioneer, Pioneer Elite, and Integra brands.
Sound United said Onkyo Corporation will retain the rights to the Pioneer and Onkyo brands for the purposes of their Digital Life and Embedded Audio businesses. Sound United will acquire all worldwide third-party distribution agreements under which the premium audio products are currently sold.
A statement released today said the preliminary agreement will enable both companies to quickly proceed with negotiations of definitive terms and agreements.
Sound United CEO Kevin Duffy, who will become CEO of the newly combined businesses, said: “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.”
The company said the pairing will give it the capacity to continue “a history of unparalleled product development”.
“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.”
Completion of the transaction is subject to various conditions and approvals, including the approval of Onkyo Corporation’s shareholders at the Annual General Meeting expected to be held on or about 26th June 2019.
Sound United is a subsidiary of DEI Holdings, a portfolio company of Boston-based private equity firm Charlesbank Capital Partners, LLC.