Onkyo Shareholders OK Voxx, Sharp Buy; August Close Expected
Voxx’s Premium Audio subsidiary and Sharp formed a joint venture to acquire assets of Onkyo Home Entertainment, as the next step after an asset purchase agreement signed in early June (see 2106030071). Onkyo shareholders approved the proposed transaction on Friday,…
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said Voxx Monday. Purchase price is $30.8 million, plus the assumption of liabilities and future commission payments to Onkyo on select product sales, Voxx said. Premium Audio, which will own about 75% of the joint venture, will handle distribution worldwide and be responsible for all sales and marketing. Sharp, with 25% share, will be responsible for manufacturing through its Malaysia facility. The joint venture will have ownership of the brands, intellectual property, engineering, and manufacturing rights of the Onkyo and Integra brands. The Onkyo deal is expected to be finalized on or before Aug. 30. "It will take time to ramp up production and secure parts, given near-term industry headwinds," said Voxx CEO Pat Lavelle, but Voxx expects the transaction to lead to "significant growth and improved profitability in the years ahead." It anticipates net sales of about $50 million in fiscal 2022, ending in May, "with upside thereafter as we leverage our distribution domestically and abroad." Voxx also signed a new licensing agreement with Pioneer to market and sell the Pioneer and Pioneer Elite brands worldwide through Premium Audio, excluding China.