Pioneer and KKR agree to Pioneer DJ share purchase

[frankle]

So it's really happening:

Tokyo and Kawasaki, Japan ‐‐ September 16, 2014—Pioneer Corporation (“Pioneer”) and KKR today announced
the signing of a share purchase agreement under which Pioneer’s business division that engages in the
development, manufacturing and sale of DJ equipment will be spun off into a new company, Pioneer DJ*, which
will be jointly owned by Pioneer and KKR.
(*provisional name)
Based on this agreement, KKR will acquire all of the outstanding shares of Pioneer DJ via holding company PDJ
Holdings Co., Ltd. (“PDJHD”) for approximately JPY59 billion (approximately US$551 million at the exchange rate
of US$1=JPY107). Pioneer will then acquire newly issued shares in PDJHD with the result that PDJHD will be
owned 85.05% by KKR and 14.95% by Pioneer.
Pioneer’s DJ equipment business develops, manufactures and sells equipment for DJs, including DJ players, mixers,
controllers, headphones and speakers. It is a leader in the DJ equipment market with strong brand image,
reputation for technological differentiation, and high profitability.
Pioneer and KKR will jointly leverage their respective business resources, brand power and technological capability,
as well as global‐technology and media‐industry investment experience, and networks for the further growth of
Pioneer DJ.
Susumu Kotani, Representative Director, President and CEO 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 globalization of our DJ equipment business and expand the brand. We are pleased to have reached
an agreement with KKR on the purchase of Pioneer DJ. KKR has a wealth of experience in the technology and
media industry globally, and we are confident it has the expertise to drive Pioneer DJ forward. 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.”
Hirofumi Hirano, Member of KKR and CEO of KKR Japan, said, “Pioneer has built a leading global DJ equipment
business based on its powerful brands and excellence in matching product development to market requirements.
KKR will work together with Pioneer DJ’s innovative management team and employees, and our investment
partner Pioneer, to support further long‐term growth of the business.”
Yoshiaki Ide, Executive Officer and Division Chief Officer of Pioneer’s Pro. Sound & Visual Business Division, said,
“KKR’s global investment activities support the growth of businesses in a range of industries, including those in the
technology and media sectors. As such, we believe this partnership will enable the further expansion of our own
business. With KKR’s support, Pioneer DJ aims to add further customer value and exceed expectations with
accelerated product development and enhanced service. In addition, Pioneer, as an important shareholder, will
provide ongoing support.”
Subject to approval by the relevant authorities and other customary closing conditions, the above agreements are
expected to be completed by March 2015.
Forward‐Looking Statements
This release contains certain forward‐looking statements. Forward‐looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning
matters that are not historical facts. Such statements are subject to the risk that the terms of such transaction may
be modified, the transaction may not be completed at all or the benefits and synergies from such transactions are
not realized. The forward‐looking statements are based on the beliefs, assumptions and expectations of the
parties referenced herein, taking into account all information currently available to them. These beliefs,
assumptions and expectations can change as a result of many possible events or factors, not all of which are
known to these parties or are within their control. None of the parties undertakes any obligation to update any
2
forward‐looking statements to reflect circumstances or events that occur after the date on which such statements
were made except as required by law.
About Pioneer Corporation
Pioneer Corporation is a leading global manufacturer of electronic products for the consumer and professional
markets. To embody our philosophy, “Move the heart and Touch the Soul”, Pioneer brings the world ever‐new
products and services in the areas of Car Electronics, Home Electronics and other related devices and solutions. It
also develops organic EL lighting, medical and healthcare equipment‐related products. Its shares are traded on the
Tokyo Stock Exchange. For more information on Pioneer, visit the company's website at
http://pioneer.jp/index‐e.php.
About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private
equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach, employing world‐class people, and driving
growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's
website at www.kkr.com.


So some interesting times ahead for Pioneer DJ!

[Patch]

BUY, BUY, BUY!!!

no, wait...

SELL! SELL! SELL!!!

[deathy]

hah. Makes me think of the stock trader gremlin in Gremlins 2.

[deevey]

KKR is a leading global investment firm that manages investments across multiple asset classes including private
equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach, employing world‐class people, and driving
growth and value creation at the asset level.

Guess they'll be cutting down on sponsorship and advertising a wee bit ...

KKR: "who is this davinci fella anyhow"

[Daniboy]

BUY, BUY, BUY!!!

no, wait...

SELL! SELL! SELL!!!

hahahaha

[SlvrDragon50]

Never heard of KKR.

[iambiggles]

Never heard of KKR.

Why would you have done?, unless you're in the investment/asset management field I'd be surprised if you had.

Be interested to know if they have any other music/media companies in the management portfolio though. May have to trawl the website..... if I get VERY bored......or even care.... in the least.

[enorjy]

Interestingly, Allen & heath was bought up by investment group too. guess djing product are good investment nowadays

[Killing time]

that could be a motive. maybe KKR is part of another larger group that has investments within the entertainment industry.

[iambiggles]

that could be a motive. maybe KKR is part of another larger group that has investments within the entertainment industry.

it isn't. It doesn't. This is purely an asset management/share buyout deal. As far as I can see they have no other companies in their portfolio, or as partners, that are in the media or entertainment industry. But I may well have missed something as companies like this are convoluted at best.

........yes, I was bored.