(June 3, 2020) Premium Audio Company, a subsidiary of VOXX International Corporation, and Sharp have signed an Asset Purchase Agreement to jointly acquire the audio/video business of Onkyo Home Entertainment Corporation. According to VOXX, the purchase price is approximately $30.8 million (plus the assumption of liabilities), pending confirmation by an Onkyo shareholder meeting on June 25th.
Assuming the process is consummated, the VOXX and Sharp joint venture will control Onkyo’s intellectual property, brands, engineering, and manufacturing rights. Ultimately, Premium Audio Company will be responsible for all sales, marketing, and distribution of Onkyo and Integra AV products. At the same time, Sharp will resume manufacturing duties in its Malaysian plants. 11 Trading Company, a subsidiary of Premium Audio Company, will continue to handle distribution in North and South America, and Klipsch will be tasked with distribution in other parts of the world.
As of this time, Pioneer and Pioneer Elite audio/video properties (currently licensed by Onkyo) are not part of the deal, however, all parties have entered into a Memorandum of Understanding to formalize a new agreement.
According to Pat Lavelle, President and CEO of VOXX: “This acquisition is a great addition to our Premium Audio Company. Since we established our distribution relationship in July 2020, we have seen strong demand for both Onkyo and Integra products. Sharp, our partner in this venture, brings world-class manufacturing capabilities and together, with our distribution partners and strong customer relationships, we believe we can grow this business significantly in the years ahead. While we anticipate growth this year as well, should the transaction be approved, it will take time to ramp up manufacturing lines and secure parts, which is a challenge for the industry at large. With that said, we believe over the coming years, we will restore worldwide sales resulting in strong top-line growth and improved profitability.”
AV NIRVANA will update this story as new details become available.