Sound United LLC, parent company to Denon, Polk Audio, Marantz and Classé, today announced that it has entered into a term sheet agreement to acquire Onkyo Corporation’s consumer audio division, including the Onkyo, Pioneer, Pioneer Elite, and Integra brands. The preliminary agreement will enable both companies to proceed with negotiations of definitive terms and agreements. Kevin Duffy, current CEO for Sound United, will be CEO of the newly combined businesses.
“We are thrilled by the opportunity to add the venerable Onkyo and Pioneer brands to our portfolio. Sound United is one of the leading dedicated provider s of premium audio/video products, and we believe the combined businesses will bring unrivaled innovation and sound performance to our consumers and channel partners,” said Kevin Duffy.“ Upon completion of the transaction, we will work tirelessly with the consumer audio division of Onkyo Corporation to ensure a seamless transition into the Sound United family so that all employees, customers and channel partners benefit from the enhanced breadth and depth of the new organization.”
The company’s investment in more brands means Sound United will be better positioned to innovate across product categories. SU also wants to capitalise on developments in voice-enabled devices and features. Onkyo’s consumer audio division includes product categories such as AV receivers, HiFi equipment, turntables, sound bars, home theater systems and optical disc players. As part of the planned acquisition, Sound United will be acquiring all worldwide third-party distribution agreements under which the premium audio products are currently sold.
The completion of the transaction is subject to “various normal-course conditions precedent,” including, but not limited to, execution of the Definitive Agreement, the completion of satisfactory due diligence, committed financing, and approvals from regulators and the Onkyo Corporation’s shareholders at the Annual General Meeting, expected to be held on or about June 26, 2019.