TOKYO -- U.S. private equity fund KKR and Japan's Pioneer plan to sell off a jointly owned disc jockey equipment business, with a buyer expected to be chosen by autumn.
Pioneer DJ is likely to draw interest from companies outside Japan and large investment funds. The bidding process is slated to wrap up in the summer or fall.
In 2015, the Japanese company sold an 85.05% stake in Pioneer DJ to KKR for about 59 billion yen ($550 million at the time), while holding on to the rest. The spun-off unit controlled a global share of 60% to 70% in mixers, turntables and other disc jockey equipment, generating annual revenue totaling tens of billions of yen. Pioneer DJ was especially strong in Europe and the U.S.
Pioneer had decided to prioritize its onboard vehicle device operation, a decision that involved offloading its audiovisual units and other segments. But the company's finances continued to deteriorate. Its shareholders agreed in January to a bailout from Baring Private Equity Asia, a Hong Kong buyout firm. Pioneer is restructuring its business as Baring's wholly owned subsidiary.