After a report surfaced earlier in the month that Pioneer Corporation had put its DJ equipment division on the selling block, the Japanese manufacturer has confirmed it has sold Pioneer DJ to private equity firm KKR & Co LP For $550 million.
Pioneer has been selling off non-core assets to focus on its automotive electronics business. On Friday, the company said it would sell its home audio-visual business to audio equipment maker Onkyo Corp.
Obligatory press release gush from 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.”
Obligatory press release gush from 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.”
The deal is expected to close in March 2015.