Baring seals Pioneer carve-out

The firm has teamed with Onkyo to buy the home audio-visual business of Japan’s Pioneer.

Baring Private Equity Asia has agreed to make an undisclosed investment in a venture that will combine the home audio and video component businesses of Osaka-based Onkyo Corporation and fellow Japanese electronics firm Pioneer Corporation, according to a joint statement.

Baring and Onkyo will acquire shares in Pioneers home AV unit, after which Baring will hold 51 percent, with the remainder yet to be determined between the other parties.

Financial details of the sale have not been disclosed.

“To cope with such changes of the [home AV] market, Pioneer and Onkyo will make an effort to increase competitiveness by capitalising on the resources of the two companies such as strong brand power and superior technologies. Also, the capital participation of Baring will maximise synergies including business expansion,” the statement said.

Pioneer’s home audio-visual operations were started in July 2013 as a wholly-owned subsidiary of Pioneer Corporation for planning, manufacturing, sales and marketing of home AV products. High quality audio-video and communication-related equipment designed by the business have been a core business of Pioneer.

The Japan market has provided success for Baring recently, the firm selling Net Japan Holdings, a precious metal, jewellery and diamond recycler, to Japanese financial services group Orix Corporation in April, Private Equity International reported earlier.

Financial details of the transaction were undisclosed, but Baring sold the business for an enterprise value of ¥30 billion ($292 million; €210 million), in which Orix approximately invested ¥21 billion of equity.

Pan-regional firm Baring is also in the process of launching its sixth private equity fund, a vehicle that will raise as much as $2.9 billion from investors, sources with direct knowledge of the matter revealed to PEI in March.