Five months after Sound United entered into a term sheet to acquire Onkyo Corporation's Home Audio division, the companies have confirmed a mutual agreement to terminate the proposed acquisition.
In May of this year, Sound United LLC, parent company to Denon, Polk Audio, Marantz, Definitive Technology, HEO, Classe, and Boston Acoustics, was looking to acquire Onkyo's consumer audio division, which includes the Onkyo, Pioneer, Pioneer Elite, and Integra brands. At the time, Sound United said the acquisition would help the company "meet consumer demand for the best-sounding and most technologically advanced audio products available" through this expanded portfolio, and "better innovate across product categories, feature sets, technology partners, and consumer targets." Kevn Duffy, CEO of Sound United, was to be CEO of the newly combined businesses.
Today, Sound United notes that the completion of the transaction was subject to several conditions, as noted back in May, including the finalization of all definitive agreements, completion of satisfactory due diligence, securing of committed financing, and various other required approvals.
"At this point," the company confirmed, "we have mutually agreed that it is in the best interest of both organizations to terminate the proposed acquisition. After months of rigorous work and negotiations, it became apparent that all of the necessary closing conditions could not be satisfactorily achieved."
Sound United says it will continue to pursue its mission to "bring joy to the world through sound" through "organic growth" with its existing brand portfolio, and "opportunistic acquisitions which allow us to better serve the consumer."
Sound United is a subsidiary of DEI Holdings, a portfolio company of Boston - based private equity firm Charlesbank Capital Partners, LLC. Its brands offer a wide range of AV products, from high-end and custom installation to mid-tier gear, including loudspeakers, soundbars, AV receivers, wireless multi-room music systems, Bluetooth speakers, amplifiers, turntables, and headphones.