Voxx, Sharp Sign Letter of Intent to Acquire Onkyo's Home AV Business

Voxx, which distributes Onkyo, Integra and Pioneer audio products under a distribution agreement signed last summer (see 2007300027), inked a letter of intent to acquire Onkyo’s Home Audio/Video business, along with Sharp, which manufactures products for Onkyo in Malaysia. The companies “have a strong working relationship” and are working toward reaching a definitive agreement by May 20, Voxx said Monday. Voxx expanded its alliance with Onkyo and Pioneer to distribute the Onkyo, Pioneer, Pioneer Elite and Integra brands in the Americas in July. The previous year, Onkyo became the distributor of Klipsch audio products in Japan. Distribution of AV receivers, hi-fi equipment, mini systems, smart speakers, turntables, sound bars, home theater systems and optical disc players has been handled through subsidiary 11 Trading Co., since July. At the time, Klipsch CEO Paul Jacobs said Klipsch will become an “innovative and complete audio solutions provider in consumer technology and better equipped to address consumer demand with state-of-the-art AV solutions.” A Voxx spokesperson told us Monday the company is currently distributing Onkyo, Integra and Pioneer products and will continue to do so while discussions are underway. He didn’t address questions on how brands would be affected under the acquisition or the size of Sharp’s share of the business, saying more details will be available at signing of the definitive agreement. If an agreement is reached, it will be presented at the Onkyo shareholder meeting scheduled June 25. In a statement, Voxx CEO Pat Lavelle 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."