Pioneer Corp. and KKR have announced the signing of a share purchase agreement under which Pioneer’s business division that engages in the development, manufacturing and sale of DJ equipment will be spun off into a new company, provisionally named Pioneer DJ, which will be jointly owned by Pioneer and KKR. Based on this agreement, KKR will acquire all the outstanding shares of Pioneer DJ via holding company PDJ Holdings Co., Ltd. (PDJHD), for approximately $551 million. Pioneer will then acquire newly issued shares in PDJHD with the result that PDJHD will be owned 85.05 percent by KKR and 14.95 percent by Pioneer.
Pioneer’s DJ equipment business develops, manufactures and sells equipment for DJs. It boasts a strong brand image, reputation for technological differentiation and high profitability. According to the companies, Pioneer and KKR will jointly leverage their respective business resources, brand power and technological capability, as well as global technology and media industry investment experience and networks, for the further growth of Pioneer DJ.
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 percent 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 next March.