- Companies to form partnership to accelerate global growth -
TOKYO & KAWASAKI, Japan -- (Business Wire)
Pioneer Corporation (“Pioneer”) and KKR today announced the signing of a
share purchase agreement under which Pioneer’s business division that
engages in the development, manufacturing and sale of DJ equipment will
be spun off into a new company, Pioneer DJ*, which will be jointly owned
by Pioneer and KKR.
(*provisional name)
Based on this agreement, KKR will acquire all of the outstanding shares
of Pioneer DJ via holding company PDJ Holdings Co., Ltd. (“PDJHD”) for
approximately JPY59 billion (approximately US$551 million at the
exchange rate of US$1=JPY107). Pioneer will then acquire newly issued
shares in PDJHD with the result that PDJHD will be owned 85.05% by KKR
and 14.95% by Pioneer.
Pioneer’s DJ equipment business develops, manufactures, and sells
equipment for DJs, including DJ players, mixers, controllers,
headphones, and speakers. It is a leader in the DJ equipment market with
strong brand image, reputation for technological differentiation, and
high profitability.
Pioneer and KKR will jointly leverage their respective business
resources, brand power, and technological capability, as well as
global-technology and media-industry investment experience, and networks
for the further growth of Pioneer DJ.
Susumu Kotani, Representative Director, President and CEO of Pioneer,
said, “As we accelerate our efforts to concentrate management resources
on our car electronics business, Pioneer has been seeking the optimal
partner to further the globalization of our DJ equipment business and
expand the brand. 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% of the
voting rights in Pioneer DJ and we will maintain a framework for
cooperation to ensure the future growth of the company.”
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.”
Yoshiaki Ide, Executive Officer and Division Chief Officer of Pioneer’s
Pro. Sound & Visual Business Division, said, “KKR’s global investment
activities support the growth of businesses in a range of industries,
including those in the technology and media sectors. 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.”
Subject to approval by the relevant authorities and other customary
closing conditions, the above agreements are expected to be completed by
March 2015.
Forward-Looking Statements
This release contains certain forward-looking statements.
Forward-looking statements relate to expectations, beliefs, projections,
future plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. Such
statements are subject to the risk that the terms of such transaction
may be modified, the transaction may not be completed at all or the
benefits and synergies from such transactions are not realized. The
forward-looking statements are based on the beliefs, assumptions and
expectations of the parties referenced herein, taking into account all
information currently available to them. These beliefs, assumptions and
expectations can change as a result of many possible events or factors,
not all of which are known to these parties or are within their control.
None of the parties undertakes any obligation to update any
forward-looking statements to reflect circumstances or events that occur
after the date on which such statements were made except as required by
law.
About Pioneer Corporation
Pioneer Corporation is a leading global manufacturer of electronic
products for the consumer and professional markets. To embody our
philosophy, “Move the heart and Touch the Soul”, Pioneer brings the
world ever-new products and services in the areas of Car Electronics,
Home Electronics and other related devices and solutions. It also
develops organic EL lighting, medical and healthcare equipment-related
products. Its shares are traded on the Tokyo Stock Exchange. For more
information on Pioneer, visit the company's website at http://pioneer.jp/index-e.php.
About KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140915006718/en/
Contacts:
Pioneer Corporation
Corporate
Communications Department
Pioneer_prd@post.pioneer.co.jp
or
KKR
Asia Pacific
Anita Davis, +852 3602 7335
Anita.Davis@kkr.com
or
KKR
Japan
Ashton Consulting
Brendan Jennings/Mika
Chuma, +81 3 5425 7220
KKRJapanPR@ashton.jp
or
KKR
New York
Kristi Huller, +1 212 230 9722
Kristi.Huller@kkr.com
Source: KKR and Pioneer Corporation
© 2024 Canjex Publishing Ltd. All rights reserved.