(June 29, 2021) Yesterday, VOXX International Corporation announced two exciting pieces of news, both of which promise home theater and audio fanatics an exciting and competitive marketplace for years to come.
First on the docket is confirmation of a pending joint acquisition proposal by Premium Audio Company (a subsidiary of VOXX) and Sharp Corporation. Onkyo shareholders have officially approved a total purchase price of $30.8 million plus the assumption of certain liabilities and future commissions to Onkyo for specific product sales. The deal finds Premium Audio Company (PAC) taking 75% ownership and assumption of sales, marketing, and distribution duties, while Sharp assumes 25% ownership and manufacturing responsibilities in its Malaysian factory. VOXX says the deal will be consummated on or before August 30, 2021.
Terms of the acquisition say the PAC/Sharp joint venture will own the rights to the brands, IP, engineering, and manufacturing of Onkyo and Integra. The ramifications of this agreement are huge, as it allows Onkyo and Integra to remain unique brands within the structure of a financially healthy ownership; it's a significant win for consumers.
According to Pat Lavelle, President and Chief Executive Officer of VOXX International: "This is another milestone for VOXX and our shareholders, as we have aligned with a strong manufacturing partner in Sharp, while adding powerful brands, products and engineering capabilities to our Company. It will take time to ramp up production and secure parts, given near-term industry headwinds, but believe this transaction will lead to significant growth and improved profitability in the years ahead. In fiscal 2022, we anticipate net sales of approximately $50.0 million, with upside thereafter as we leverage our distribution domestically and abroad. We look forward to welcoming the Onkyo team to the VOXX family."
Next up is a new announcement concerning Pioneer and Pioneer Elite. VOXX says it entered a new licensing agreement with Pioneer Corporation, granting PAC the ability to market and sell Pioneer and Pioneer Elite AV equipment worldwide (minus the People's Republic of China). Onkyo Corporation previously held a similar agreement, tho that licensing agreement was not included in the PAC/Sharp joint venture acquisition.