Pioneer to exit the DJ business? Reports say hardware giant’s egress is imminentSkrille Do Lab

Pioneer to exit the DJ business? Reports say hardware giant’s egress is imminent

Esteemed audio hardware manufacturer, Pioneer DJ is allegedly eyeing an exit from the DJ business, according to several Japanese financial websites. Japanese news source Nikkei Business reports that Pioneer DJ is currently negotiating with investment firm KKR & Co., the entity that purchased 85.05 percent of Pioneer’s DJ subsidiary in 2015. The sale netted the equipment company $550 million dollars at the time.

Pioneer DJ’s talks with KKR & Co. now concern the company’s strategy to clear out its stock, according to Nikkei Business. The bidding process for the company has already begun, and is expected to conclude with the choice of a buyer either later this summer or fall. The purchase price is expected to yield over $500 million.

Although Pioneer DJ’s parent company posted consecutive fiscal losses in 2016 and 2017, Pioneer DJ continued to record sales that surpassed the $200 million mark in 2018. Pioneer DJ’s control rests between 60 and 70 percent of “the global share in DJ mixers, turntables, and other products,” according to fellow Japanese news source, Nikkei Asian Review.

The commercial success of Pioneer DJ and its array of products stood in contrast to the financial strain that Pioneer experienced in recent years. Hong Kong buyout firm, Baring Private Equity Asia, notably bailed out Pioneer for $930 million. Pioneer shareholders agreed to the Baring Private Equity Asia assisted bailout in January.

H/T: Nikkei Asian Review

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