VOXX International who’s business dealings in Australia are at best questionable, has finally snared Onkyo for US$30.8 million in partnership with Sharp.
Desperate for a receiver that would compete up against Sound United’s highly popular Marantz and Denon products Voxx International has acquired the business via their Premium Audio Products Group who recently set up a subsidiary in Australia.
The US audio signed an asset purchase agreement (APA) with Onkyo for US$30.8 million. The deal remains subject to approval by Onkyo shareholders in a vote scheduled to take place on June 25, 2021, included in the deal is the Integra brand for overseas markets with the exception of Australia.
Missing from the deal is the Pioneer and Pioneer Elite brands which ChannelNews understands could be subject to a second deal.
In Australia, the Onkyo Integra brand is set to be sold and distributed by Snap AV who are set to source the product direct from Onkyo Japan.
Peter Shamoon Right was working to shaft Qualifi when this picture was taken with Qualifi CEO MIchael Hendriksen left
Questions have been raised about the ethics of management running the US Company after they openly dealt with two employees of Melbourne based distributor Qualifi, Peter Shamoon and Phil Hawkins who while still employed at Qualifi spent 18 months hatching a plan to take the VOXX owned Klipsch business away from their employer.
A trail of emails and information accidently left on a computer are set to play a key role in a possible court case against the pair.
The deal that was delayed because of what VOXX called “minor discrepancies appear to have been totally re negotiated with the Pioneer brands taken out of the deal.
V claims the parties have entered into a separate Memorandum of Understanding regarding those licenses and this is subject to further negotiation between VOXX and Onkyo.
While in general there were minor discrepancies between what Onkyo had previously revealed and what VOXX is now saying, most of those were minor. However, the big surprise with their latest APA is that the deal is only for the Onkyo and Integra brand which Snap AV will distribute in Australia.
ChannelNews understands that another party is pitching to get the Pioneer branded products.
In a statement issued by VOXX they said that the acquisition is a great addition to their Premium Audio Company, who employed Hawkins and Shamoon in Australia after setting up a local operation in Australia in early December 2020.
VOXX claims that since they established their PAC operation, they have seen strong demand for both Onkyo and Integra products.
Pat Lavelle, VOXX Intl President and Chief Executive Officer said “Sharp, our partner in this venture, brings world-class manufacturing capabilities and together, with our distribution partners and strong customer relationships, we believe we can grow this business significantly in the year ahead”
He added” While we anticipate growth this year as well, should the transaction be approved, it will take time to ramp up manufacturing lines and secure parts, which is a challenge for the entire industry at large. With that said, we believe over the comping years, we will restore worldwide sales resulting in strong top-line growth and improved profitability.”
VOXX and Sharp will own the intellectual property, brands, engineering, and manufacturing rights of Onkyo’ s audio/video division. VOXX’s Premium Audio Company would be charged with all sales, marketing, and distribution of Onkyo and Integra products.
Sharp will be responsible for manufacturing, “…which it currently does in Malaysia.”
Lavelle claimed that distribution will be the responsibility of Klipsch – another wholly-owned subsidiary of VOXX.
In Onkyo’ s fiscal 2021 final results, it was revealed that the brand’s entire AV division revenues were only $31.8 million.
Onkyo has been in decline now for years. And while their deteriorating financial status was part of that decline, there were many other factors which are now subject to investigation. There has been no mention of the millions in debt on the Onkyo books and who will tasker responsibility for this debt.
