VOXX, Sharp Sign Letter Of Intent To Acquire Onkyo Home Entertainment
VOXX International, the parent company of AudioVox, Klipsch and other home and automotive CE brands, in association with Sharp, has signed a letter of intent to acquire the home A/V business of Onkyo Home Entertainment, the companies announced Monday.
Both VOXX and Sharp will have exclusivity to negotiate under a binding agreement as acquisition discussions continue.
According to the announcement, the parties are looking at reaching a Definitive Agreement by May 20, 2021, at which time Onkyo shareholders will be informed of the status at the company’s Shareholder General Meeting on June 25, 2021.
“In July 2020, VOXX, through its newly formed distribution company and subsidiary 11 Trading Company, became the exclusive distributor in the Americas of the Onkyo, Pioneer, Pioneer Elite, and Integra brands,” the joint statement said. “This built upon and expanded the alliance between the companies when Onkyo became the distributor of Klipsch premium audio sound solutions in Japan in 2019. For many years, Sharp Corporation has manufactured products for Onkyo at their Malaysian factory as part of a joint venture.”
Pat Lavelle, President and CEO of VOXX International said, “For the past two years, we’ve worked well with the Onkyo team, expanding our relationship, and most important, serving the needs of our customers. It is our hope that we can reach an agreement shortly as they have strong brands, and through our Premium Audio Group (PAC), led by the Klipsch management team, we have widespread distribution and a global infrastructure to support our growth.”
The news follows the recent disclosure by VOXX that it had obtained the exclusive distribution rights to the Onkyo, Integra, Pioneer, and Pioneer Elite brands in the U.S.
In preparation for the acquisition, VOXX recently established the Premium Audio Company (PAC), with two new divisions, known as the Klipsch Group, handling the Klipsch, Jamo, Energy, and ProMedia speaker brands; and the 11 Trading Company handling the Onkyo, Pioneer, Pioneer Elite, Integra, Magnat and Heco brands.
Klipsch will remain the company’s premium brand, VOXX has said.
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By Greg Tarr
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