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Pioneer to sell audiovisual equipment business to investment fund

June 24, 2014

Pioneer Corp. said Tuesday it is planning to sell its flagging audiovisual equipment business to investment fund Baring Private Equity Asia amid shrinking demand, as consumers increasingly opt for online music and video distribution services.

Pioneer will sell a 51 percent stake in Pioneer Home Electronics Corp., its wholly owned home audiovisual product subsidiary, to the investment fund. A portion of the remaining shares in the unit will be sold to Japanese audio equipment maker Onkyo Corp.

Pioneer also said it will form a business alliance with Onkyo with an eye to integrating their home audiovisual businesses in the future.

With the tie-up, the Japanese companies are aiming to rebuild their businesses by jointly procuring parts and sharing logistics networks while continuing to sell products under their own brand names.

As Pioneer has focused its resources on car-mounted equipment such as navigation systems, which account for about 70 percent of its sales, it cannot afford to invest in the development of new audiovisual products.

Onkyo, a long-standing audio equipment manufacturer with strength in amplifiers and audio speakers, hopes to boost its brand's competitiveness by participating in Pioneer's business realignment.

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Source: Japan Economic Newswire

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