Pioneer to leave the DJ industry, according to reports
Pioneer is on the verge of leaving the DJ industry, according to new reports.
Japanese media outlet Nikkei Business has outlined that KKR & Co., which owns 85 per cent of the business, along with Pioneer, owning just 15 per cent, are both in negotiations to sell off their entire stock to new buyers. If the sale comes to fruition, Pioneer will completely withdraw from the DJ equipment business.
Fund officials who are considering to bid on the stock, have said "the final sale amount will be about 60 billion to 70 billion yen," which comes to about $500 million.
Pioneer DJ's sales reached 25 billion yen in 2015, just over $225 million. Its EBITDA (earnings before interest, taxes and amortization) was nearly 6 billion yen, which is over $54 million. It is expected to continue to surpass these numbers in the coming years.
While Pioneer DJ remains the industry standard in the DJ industry and controls nearly 70 per cent of the global share in DJ equipment, the company has been restructuring as of late. It laid of 3,000 workers in January and received a bail out of $930 million from Baring Private Equity Asia, according to Japan Time.
Harrison is Mixmag's US Editor. Follow him on Twitter here
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