Gibson Buys Stake in Onkyo Japan, Majority Interest in Onkyo USA

On January 4, Gibson Guitar Corp. announced a strategic partnership with Onkyo Corporation, a worldwide leader in consumer audio. Offering high quality audio equipment and home theater systems, Onkyo offers Gibson’s newly-formed Pro Audio Division substantial technology resources. Gibson will provide Onkyo with its marketing resources and expertise.

Through this venture, Gibson will acquire a majority of Onkyo USA (Onkyo’s exclusive distributor for North America and a distributor for Central and South America) and become the second largest shareholder in Onkyo Corporation. Gibson will make a strategic investment in the company, and Gibson Cchairman and CEO Henry Juszkiewicz will be given a position on the Onkyo board of directors. Likewise, Onkyo will invest in Gibson, and CEO and president Munenori Otsuki will take a position on the company’s Board of Directors.

Together, the two entities will form a Hong Kong-based joint venture focusing on design and development of unparalleled consumer audio products. Through this alliance, Onkyo USA becomes the latest addition to the Gibson Pro Audio division, which already includes KRK, Cerwin-Vega! and Stanton.

All agreements are subject to Japanese regulatory clearance, negotiation of definitive agreements and financing approvals of lenders.