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Voxx, Sharp Establishing Joint Venture in $31M Onkyo AV Buy

Voxx and Sharp are establishing a joint venture, they said Thursday, announcing the previously disclosed (see 2105030054) joint acquisition of Onkyo’s AV business for $30.8 million. The agreement includes assumption of certain liabilities, and future commissions on certain sales will…

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be payable, they said. Voxx’s Premium Audio subsidiary and Sharp signed a letter of intent last month to buy Onkyo Home Entertainment’s AV business. The joint venture is subject to the approval of shareholders at the June 25 annual meeting. Upon closing, Voxx and Sharp would own “substantially all of the assets of Onkyo's audio/video business,” including intellectual property, brands, engineering, and manufacturing rights. Premium Audio would be responsible for all sales, marketing, and distribution of Onkyo and Integra AV products; Sharp would be responsible for manufacturing, which it currently does in Malaysia. It's expected that distribution of Onkyo and Integra AV products will be handled through Premium Audio’s 11 Trading subsidiary in North and South America and through Voxx’s Klipsch subsidiary, headed by CEO Paul Jacobs, in all other global regions. The Pioneer and Pioneer Elite AV brands, currently licensed by Onkyo, and which have been sold through 11TC, aren't part of the purchase agreement, though the parties signed a memo of understanding to form a new agreement for the brands, they said.