Onkyo to join Sound United’s distribution portfolio

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.

Published by

Martin Dew

editor

6 Comments

  1. So basically every receiver worth a damn except Sony is now owned by one company. And most of them on the list are second fiddle to the roughly equivalent Denon sku.

    I don’t get it.

  2. Sam Posten

    So basically every receiver vendor worth a damn (except Sony) is now owned by one company. And most of them on the list are second fiddle to the roughly equivalent Denon sku.

    I don't get it.

    Isn't Yamaha still "independent"?

  3. Consolidation of this sort is always good for the bottom line but usually not so much for the consumer. Ultimately this may be a sign to step up to the next tier.

  4. Nothing good ever comes from having so many (formerly) competing brands consolidated into one conglomerate. Competition is a good thing. Lack of it just results in subpar products, eventually.

  5. Imo…

    It's going to be better to the brand owner, bad news to the consumers.
    Currently, Marantz n Denon are built in Vietnam, with its highest end products built in Japan. Onkyo with Pioneer entry product built in Vietnam, mid-low and above products built in Malaysia.
    Brand classification will likely to determine its class like in the world of another group of consumer products ……timepieces.
    If Pioneer gets classed as entry level brand like Tissot, Onkyo and Denon into mid class like Rado and Longines, Marantz into high end brand like Omega… Malaysia plant can be shut down as wages goes up, low end product can be moved to Cambodia or Myanmar for production, while Vietnam is matured enuff to make mid end brand and products as Denon and Marantz under the current brand ownership had built up its technical foundations.
    Higher-end brand and products still be produced in Japan or perhaps Taiwan since both governments are much friendlier to the European groups, without having the concerns that the mainland China government will steal their technology.
    Costs, politics are 2 major factor that affects a corporation growth.

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