Sale Of Pioneer Onkyo Collapses, As Speculation Mounts About Klipsch
The Onkyo and Pioneer sound have the for-sale sign back up after Sound United walked away from a deal with the Onkyo Corporation, it’s also tipped that the Klipsch brand is up for sale as the market for premium and mid-range sound gear “gets tough”.
Sound United who own Denon, Marantz, HEOS, Polk, Boston Acoustics and other brands in the audio sector have not said why they walked away from the deal after they initially reached an agreement in May 2019, that would have seen the transfer all of Onkyo’s shares to its consolidated subsidiary Viper Holdings.
The move comes as speculation mounts that Vox has the Klipsch brand up for sale with one insider telling ChannelNews “I think most US audio brands would consider a sale at the moment” as the market for quality audio systems comes under pressure from networked audio speakers.
Under the agreement, Onkyo agreed to assign its Home AV related business to Sound United according to Forbes, so that it could focus its business resources and technology in the two areas it believes to have strongest growth potential – Digital Life portable products and OEM products and services targeting the B2B space.
Onkyo’s rationale was that the combination of Onkyo’s world-class premium brands, engineering and manufacturing capabilities with Sound United LLC’s portfolio of Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé, and Boston Acoustics would position the new group well to capture the future growth of music and entertainment in the home.
The arrangement would have allowed Onkyo to continue to capture the growth of this business through future licensing royalties.
In Australia Pioneer products are distributed by Powermove with Queensland based Avation also offering the product to system integrators.
It’s believed that the deal with Viper Holdings was subject to the completion of satisfactory due diligence, securing of committed financing and various other necessary approvals.
At this point, Onkyo and Viper Holdings have mutually agreed to terminate the Transfer based on the determination that closing cannot be achieved by November 30, 2019, the expiration date of the agreement.
Onkyo says it still believes in the value of combining these businesses and remains open to future discussions should conditions change, but for now, Onkyo has determined that it is time for the organization to return to dedicating its attention and resources to running its Home AV business independently.