VOXX International Corporation e Sharp Corporation have signed a Letter of Intent concerning theAcquisition of the Home Audio / Video (A / V) division of Onkyo Home Entertainment Company. Negotiations are currently underway with the aim of reaching a definitive agreement by May 20, 2021, in order to be able to present the agreement eventually reached at the meeting with Onkyo shareholders on June 25, 2021.
The choice of VOXX and Sharp is not accidental: both companies have rather close relationships with Onkyo. In July 2020, VOXX leveraged subsidiary 11 Trading Company to manage the exclusive distribution of Onkyo, Pioneer, Pioneer Elite and Integra products (i.e. all brands that are part of Onkyo Home A / V) in North America. Sharp has been involved in producing Onkyo brand products for years at its plant in Malaysia. It is therefore not difficult to understand what reasons led to negotiate for the acquisition of the entire A / V division.
Recall that Onkyo’s recent past has been quite eventful. The initial phases for the acquisition process of Pioneer Home Entertainment date back to September 2014 and were then completed in March 2015. In 2019 Onkyo seemed destined to enter the increasingly dense galaxy of Sound United, a company that over the last years it has absorbed many major brands such as Denon and Marantz. The operation, however, vanished in October of the same year and since then various rumors have arisen about possible internal restructuring or agreements with third parties.
Pat Lavelle, President and CEO of VOXX International Corporation, said:
Over the past two years we have worked well with the Onkyo team, expanding our relationships and, most importantly, meeting the demands of our customers. We hope to reach an agreement shortly because they have strong brands and through our Premium Audio Group, led by the team that manages Klipsch, we have a widespread distribution and global infrastructure to support our growth.
The Premium Audio Group (PAC) mentioned by Lavelle was created in recent times and includes two subsidiaries: the first is the aforementioned 11 Trading Company, which deals with the brands Onkyo, Pioneer, Pioneer Elite, Integra, Magnate e Heco; the second is the Klipsch Group, which comprises Klipsch, Jamo, Energy e ProMedia. The Home Audio / Video division of Onkyo would therefore enter into a growing structure that has all the means to be able to enhance the historical brands.