updated 08:20 am EDT, Fri June 27, 2014
More then half of Pioneer division being offloaded to Baring Private Equity
Electronics manufacturer Pioneer has agreed in principle to a deal that will see most of its struggling audiovisual hardware business sold to rival Onkyo and an investment firm. Pioneer will sell a 51 percent stake in Pioneer Home Electronics to Baring Private Equity Asia. The remaining 49 percent will be split between Onkyo and the Pioneer parent company -- Onkyo and Pioneer will continue to sell products under separate banners.
The Pioneer Home Electronics brand was instrumental in the development of interactive cable TV, the Laser Disc player, Supertuner technology, DVD and DVD recording, plasma displays, and Organic LED (OLED) display production. In March 2010, Pioneer stopped producing televisions, and other technologies have been divested since.
Pioneer Home Electronics has been bleeding cash for years, only recently eking out a modest profit. Parent company Pioneer generates 72 percent of its $4.8 billion annual revenue from auto navigation and audio products.
A final deal is hoped to be reached, and approved, by the end of August.