One of the biggest brand manufacturers in music equipment and audio hardware is selling off a piece of its company.
Japan’s Pioneer Corp is to selling its disc-jockeying (DJ) audio equipment unit to private equity firm called KKR & Co LP, for about 59 billion yen ($550 million).
Last week Pioneer said it was also selling its home audio-visual business to audio equipment maker Onkyo Corp.
This new deal with Pioneer and KKR will spin off its DJ unit, which makes equipment such as speakers, mixers and turntables, into a separate company called Pioneer DJ which will then be sold to KKR by the end of March 2015, leaving Pioneer with a %14.95 voting stake in the new company, Pioneer DJ.
Pioneer is now concentrating on its automotive electronics business for its best bet on growth.
“We’re trying to transform our auto-related business and are investing a lot into that and realized we had to concentrate our resources,”
“We realized we wouldn’t be able to invest in the DJ business so it would be better to spin it off and grow it independently.”
said Chief Executive and President Susumu Kotani.
Kotani said that the DJ business was highly profitable, but further growth in such a niche DJ/EDM business would require significant further investment.