Pioneer Owner Weighs Sale of Japanese Electronics Maker

(Bloomberg) -- BPEA EQT is considering selling the iconic Japanese electronics maker Pioneer Corp. amid interest from potential buyers, according to people familiar with the matter.

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The buyout firm has been discussing with advisers a potential sale and could seek a valuation of around $1.5 billion for the maker of audio, video and car navigation equipment, the people said. Other industry players and investment funds have shown preliminary interest in acquiring the asset, the people said, asking not to be identified because the matter is private.

Considerations are at an early stage, no final decisions have been made and the buyout firm could still decide against a sale, the people said. A representative for BPEA EQT declined to comment.

BPEA acquired and took Pioneer private in 2019 in a 102 billion yen ($710 million) revival plan, which aimed to bring stability to the business by securing working capital and management support while removing uncertainty about its operations.

Tracing its roots back to the 1930s, Pioneer become an icon of audio electronics including its dynamic speakers and stereo systems. It helped change karaoke and home entertainment in the 1980s with laser discs, invested heavily in plasma televisions and introduced the world’s first commercial OLED display for a car stereo in the 1990s. The business was faced by challenges as technology evolved, and it has shifted its focus on car navigation and visualization systems as it seeks to break into the autonomous car market.

EQT AB, based in Stockholm, acquired last year the Hong Kong-based BPEA in the biggest takeover in the private equity sector. The deal combined the two firms’ Asia private equity teams to create BPEA EQT. The firm has been active in the APAC region recently, with deals including VetPartners, a veterinary services provider in Australia and New Zealand, and Benesse Holdings, a publicly-traded Japanese education and nursing care provider. It’s also buying a majority stake in HRBrain Inc., a Japanese software startup specializing in human resource management.

(Updates with background in last paragraph.)

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