KKR completes Pioneer DJ buyout

Kohlberg Kravis Roberts has completed the share purchase of Japanese DJ equipment business Pioneer DJ, taking an 85.05 percent stake, according to a statement. The firm spun out of parent company Pioneer Corporation to create an independent business, PDJ Holdings.

It is now wholly owned by KKR and Pioneer Corporation, which owns the remaining 14.95 percent.

The transaction value was not disclosed, but media reported earlier that the deal, which was initially announced in September last year, would be worth around $550 million.

The Japanese firm develops and producers DJ equipment, including CD players, mixers, controllers, headphones and speakers.

“We aim to leverage KKR’s global network and management expertise to grow our business. As an entertainment creation company we remain committed to the development of products and services that exceed customer expectations, and through the efforts of each employee we will strive to further improve customer value,” Yoshiaki Ide, Pioneer DJ president and chief executive, said in a statement.

Hiro Hirano, chief executive of KKR Japan, added, “Pioneer DJ has built a leading position in the market based on its powerful brands and excellence in matching product development to market requirements. Over the long term, by working together with Pioneer DJ’s innovative management team, employees and Pioneer, KKR can provide support for the further growth and global expansion of the company.”

The deal is KKR’s second announced Japan buyout completed this year and demonstrates the firm’s ability to close corporate carve-out transactions in the country.

In January, the firm closed the $1.67 billion carve-out of Panasonic Healthcare, the healthcare unit of local conglomerate Panasonic, Private Equity International reported earlier.