Pioneer DJ sold to KKR, Announced today

Wonder if it will be bad thing for us Djs or a good thing.

How bout new products and prices?

o nutshell this — Pioneer Corporation has sold the assets that run the Pioneer DJ brand (it is not a company as such right now) to KKR. They in turn will create a new company provisionally called Pioneer DJ, will then issue shares, 85.05% of which will be owned by KKR, and the other 14.95% will be in the hands of Pioneer Corporation. Clear?

"Pioneer DJ was never a strictly a company, but now it is, with the same people involved, the same great products being put out, and everything on the face of it remaining as it is now. Time will tell how much remains the same, as such huge moves often mean changes, but it’s way too early to speculate on that one. But I would expect that having fresh money involved and a renewed purpose, Pioneer DJ will move onwards and upwards.

But as far as you’re concerned, it’s business as usual."

KKR isn’t really a corporate raider these days in that mold; they’re just a hugely successful equity company that shops for companies a lot. And now they’re looking at Japan, already having bought Panasonic’s spun-off healthcare unit. Two solid bets in the current globalized world would certainly be old people and ravers. See Sophie Knight writing for Reuters for some background.

The deal is a share purchase agreement, by which KKR & Co. LP purchases shares of a newly-spun off company consisting of the former “business division that engages in the development, manufacturing and sale of DJ equipment.” Just over 85% of the company is owned by KKR with the remaining minority stake going to Pioneer Corp.; “Pioneer DJ” is the provisional name of the company. (See press release at bottom.)

Especially relevant in the wake of the Apple/Beats deal, that includes headphones: “DJ players, mixers, controllers, headphones, and speakers.”

If you think Pioneer was diverse, KKR is just about money. They own the Chinese farming giant that sells chickens to KFC. They also have wind farms. Their portfolio includes a Milwaukee company that makes industrial blowing machines, Go Daddy (the domain company), an off-highway tire company, and the water and wastewater company in Bayonne, New Jersey, to name just a few. David Petraeus, the American former NATO commander, works with them to talk about global opportunities.

Ultimately, KKR will have access to far more capital, if required, for R&D. Of course this is a great thing!