VOXX International begins process to acquire Onkyo AV

VOXX International has signed a Letter of Intent to acquire the Home Audio/Video business of Onkyo, partnering with Sharp Corporation to seal the deal.

Having been granted granted exclusivity while discussions remain underway, the pair have entered into a Binding Agreement to move forward with this proposed transaction. The expectation is that all companies will reach a Definitive Agreement as early as May 20. After which it will be presented to Onkyo shareholders at its Ordinary General Meeting of Shareholders scheduled on June 25.

In July 2020, VOXX, through its distribution company and subsidiary 11 Trading Company, became the exclusive distributor in the Americas of the Onkyo, Pioneer, Pioneer Elite, and Integra brands.

The move builds on an existing alliance between the companies. Onkyo became the distributor of Klipsch, a VOXX brand, in Japan in 2019, while Sharp has manufactured products for Onkyo at its Malaysian factory as part of a joint venture.

Pat Lavelle, President and CEO of VOXX International Corporation 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, led by the Klipsch management team, we have widespread distribution and a global infrastructure to support our growth."

VOXX International owns Klipsch, RCA, Acoustic Research, Audiovox and 808 Audio, amongst others.