Pioneer to sell DJ equipment business to KKR for $550 Mln

thumbnail

According to Nasdaq.com, Pioneer Corp. would sell its DJ equipment business to U.S. private equity firm Kohlberg Kravis Roberts or KKR & Co. L.P. for 59 billion yen or around $551 million. Pioneer would then acquire newly issued shares in PDJHD with the result that PDJ Holdings Co., Ltd. or “PDJHD” would 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. Both Pioneer and KKR would 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. The above agreements are likely to close by March 2015. Here is press release from Yoshiaki Ide, Executive Officer and Division Chief Officer: Dear valued customers: Thank you very much for your continuous interest and use of Pioneer DJ equipment. As reported in our press release of September 16, Pioneer Corporation (hereinafter “Pioneer”) and Kohlberg Kravis Roberts (hereinafter KKR) is now proceeding with establishment of a new company tentatively named as “Pioneer DJ Corporation” hopefully by next March so that development, production and sales of our DJ equipment and related devices will be further enhanced. 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. 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. In a new structure, we will continue to use “Pioneer DJ” brand and serving a wide range of DJs by developing innovative products not only for professionals but also for home-use. We sincerely appreciate your continuous support and interest in the Pioneer DJ brand. Lastly, we humbly hope that the new Pioneer DJ can live up to your expectations.