Voxx International takes over A/V Business of Onkyo Home Entertainment
Voxx International Corporation has announced that its wholly-owned subsidiary, Premium Audio Company along with Sharp Corporation have successfully acquired assets of the audio/video business of Onkyo Home Entertainment Corporation.
Onkyo Home Entertainment Corporation is a leader in the audio and video home entertainment industry, selling a variety of A/V and stereo receivers, amplifiers and hi-fi components under the Onkyo and Integra brands. Licensed products from Pioneer will include audio/video receivers and sound bars for home use and home cinema systems, among others.
The transaction was finalised on September 8, 2021. On June 3, 2021, Voxx announced that PAC and Sharp had entered into an Asset Purchase Agreement with Onkyo to jointly acquire Onkyo’s A/V business. On June 25, 2021, the proposed transaction was approved by Onkyo’s shareholders at its Ordinary General Meeting of Shareholders, and on June 28, 2021, PAC and Sharp announced the formation of a joint venture, which became the acquiring entity.
The total purchase price is $30.8 million, plus the assumption of certain liabilities and future commission payments to Onkyo on certain product sales. PAC owns approximately 77% of the joint venture, with Sharp owning approximately 23%.
PAC will focus on leveraging its strong retail relationships and distribution channels, while Sharp will focus on scaling its manufacturing lines and managing the supply chain to handle more anticipated production volume. With strong demand for the licensed A/V product lines, VOXX anticipates Fiscal 2022 annual sales to be approximately $50 million. As Sharp has been the manufacturer for years, and PAC has been the distributor since July 2020, several orders are already secured.
Pat Lavelle, President and Chief Executive Officer of Voxx International stated, “This is a significant milestone for our Company as the acquisition significantly strengthens our brand portfolio and product offering, while enhancing our customer value proposition. Onkyo and Pioneer are powerful brands with innovative products, and consumer demand is high. We believe we can rebuild the distribution network quickly, leveraging the relationships built over several decades. We are confident that we can grow the top-line and capture high margin sales, and as production ramps up, generate strong bottom-line improvements in Fiscal 2023 and beyond. We have the infrastructure and distribution to be successful and with Sharp, we have a world-class manufacturer and partner by our side.”
Paul Jacobs, President of Premium Audio Company, LLC, added, “Premium Audio Company, VOXX, Onkyo and Sharp worked together to complete a complicated asset acquisition that significantly enhances our customer offering and holds great promise,” said Paul Jacobs, President and CEO of Premium Audio Company. “It is a strong statement about the power of this newly formed alliance. Combining the number one speaker brand in the world with one of the most technically sophisticated Japanese electronics brands, ushers in a new era of design, innovation, and performance. We look forward to another 75 years of creating industry-leading products, profitability for our partners, and connecting people to their passion for entertainment.”