Pioneer confirms £335m sale of DJ business24 September 2014
Pioneer, in a joint statement with private equity firm KKR, has announced the signing of a share purchase agreement which will see the former’s DJ equipment division spun off into a new company, provisionally named Pioneer DJ, jointly owned by the two companies.
Based on the agreement, KKR will acquire all outstanding shares of Pioneer DJ via a holding company called PDJ Holdings (PDJHD) for approximately ¥59 billion (around £335m or €428m). Pioneer will then acquire newly issued shares in PDJHD leaving the company 85.05 per cent owned by KKR and 14.95 per cent by Pioneer.
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 globalisation 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 per cent of the voting rights in Pioneer DJ and we will maintain a framework for cooperation to ensure the future growth of the company.”
Subject to approval by “the relevant authorities and other customary closing conditions,” the agreement is expected to be completed by March 2015.
The Booom nightclub in Ibiza became the world’s first club to specify Pioneer’s pro-audio club sound system in July last year. (Read Installation editor Paddy Baker’s report from his and PSNEurope‘s Dave Robinson’s visit to Booom here.) The company announced the addition of four new models (pictured) to its XY Series of compact speakers – the XY-101 and XY-152 two-way PA speakers; the 15″ XY-115S subwoofer; and the powerful XY-218S subwoofer with twin 18-inch drivers – which are featured in the Booom install, on 10 September.
Mark Grotefeld, general manager, marketing, Pioneer DJ Europe, tells PSNEurope: “The new ownership takes effect from March 2015. We will continue to use the Pioneer DJ brand and further develop the existing brand assets and platforms. The company will be fully focussed and committed to developing its leading position in the dance music sector.
“Pioneer and KKR will jointly leverage their respective business resources. Pioneers DJ’s brand expertise and technological capability, as well as KKR’s global-technology and media-industry investment experience, is a synergistic combination that will fuel the further growth of Pioneer DJ.”