Pioneer has sold its DJ equipment business to US private equity firm KKR for $550m (£339m). The deal will see KKR and Pioneer become joint owners, with the Japanese manufacturer taking a 15% stake. The new venture has been given the provisional name of Pioneer DJ.
The deal is part of Pioneer's recent strategy to sell off
what it calls 'non-core assets' in order to focus on products for
the automotive sector.
Susumu Kotani, president of Pioneer, said: "As we accelerate
our efforts to concentrate management resources on our car electronics business, Pioneer
has been seeking the optimal partner to further the globalisation of our DJ
equipment business and expand the brand."
Pioneer will retain 14.95% of the
voting rights in Pioneer DJ and we will maintain a framework for
cooperation to ensure the future growth of the company."
Pioneer's DJ equipment
business develops, manufactures and sells equipment for DJs, including DJ players, mixers, controllers, headphones and speakers.