Florida-based Voxx International Corporation, which includes the Klipsch, Acoustic Research (AR), RCA, Magnat, Heco and Jamo brands, has signed a “Letter of Intent” regarding a takeover of the troubled Onkyo Home Entertainment Corporation. Voxx is supported by the Sharp Corporation, announced the company.
According to US media reports, including from WhatHiFi Store ?, the companies want to conclude a final agreement on May 20th, which will then be presented to Onkyo shareholders on June 25th. There is already a very close relationship between Voxx and Onkyo: Since July 2020, Voxx has been responsible for sales of the Onkyo, Pioneer, Pioneer Elite and Integra brands in the USA.
Previous takeover attempt
Current events bring back memories of May 2019, when Sound United LLC, parent company of Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé and Boston Acoustics, officially announced an agreement to acquire the consumer audio business of Onkyo Corporation – including the Onkyo, Pioneer, Pioneer Elite and Integra brands.
The deal was supposed to be closed about two months later, but after that it became quiet about the takeover – until Sound United canceled the purchase in October 2019. “Not all of the prerequisites required for graduation have been satisfactorily achieved”. This gave rise to speculation that Sound United had learned from a look at the books that Onkyo was far worse than previously assumed. In fact, the reported US industry website Strata-gee At the end of November 2020 that the Onkyo Corporation is insolvent and is now fighting for survival.
However, this news was no longer really surprising: At the end of the previous fiscal year on March 31, 2020, the company announced that it had suffered massive revenue losses of 49.3 percent and record losses of 90.8 million US dollars (after a small profit of $ 306,000 in fiscal 2019).