New York, NY (March 29, 2013)—Gibson Guitar Corp. has announced what it characterizes as “a strategic investment” in Japan’s TEAC Corporation, as it has entered into an agreement to purchase 54.4 percent of the company (157,447,000 shares) from Phoenix Capital for roughly $52,482,000.
TEAC, a longstanding presence in AV equipment, data storage equipment and related products, will be placed into Gibson’s Pro Audio business, which already includes the KRK, Cerwin-Vega!, and Stanton brands, as well as strategic partner, Onkyo Corporation. Gibson noted that it expects to leverage TEAC’s R&D to develop a new pipeline of products for Stanton DJ in the Pro Audio field.
The transaction will benefit both TEAC and Gibson in terms of creating synergy for marketing, distribution and back-office operations, as TEAC will be able to combine efforts in overlapping channels with Gibson and Onkyo USA. Conversely, the move is likely to also provide Gibson further penetration into Asian markets, and both companies expect to make greater use of Gibson’s EMEA warehouse as well.
Intriguingly, while placing TEAC in Gibson’s Pro Audio realm seems like an obvious move, the company’s announcement hinted that TEAC would be making a contribution elsewhere in the company, noting the new acquisition “…has the potential to add value to the Gibson MI segments, and even with the fretted instrument category.”
With the acquisition, Gibson will also be netting TEAC’s Esoteric brand, which includes multichannel recorders, handheld recorders, Apple iOS devices, DACs and more. TEAC’s product lines range from industrial data acquisition and storage, high-end audio, disc publishing, medical video, and broadcast into a broad-based consumer market through its TASCAM division. The company’s history in multichannel recorders, sound contractor products, field recorders, audio interfaces, and more have resulted in products like the self-contained Portastudio, aimed at the MI sector.
The announcement characterized the acquisition as “yet another step in Gibson’s aim to become the largest music and sound business in the world with the ability to deliver an uncompromising entertainment experience to the customer, spanning musical instruments to the most innovative recording and audio/visual devices. Adding TEAC products to Gibson’s line-up allows the company to offer tailored products to cater to every taste and economic range for music lovers, and music creators, around the world.”
Henry E. Juszkiewicz, Chairman and CEO of Gibson, said: “We are delighted to welcome TEAC and its talented employees to the Gibson family. We have both known each other for a long time and share a vision for the future: bringing together world-class engineering and technical innovation in the audio space with the world’s premier musical instrument manufacturer, and the capability to market music innovation on a global scale. Gibson is a strong believer in ‘Cool Japan’ and together with TEAC, we look forward to not only contributing to the global understanding of the ‘Cool’ products emanating from Japan in the music area, but also promoting the excellence of Japanese innovation in the industry.”
Yuji Hanabusa, President of TEAC commented: “We are very excited to join forces with one of the global legends in the music industry. This combination brings together two companies with state of the art technologies in the music space and will allow us to pursue a shared mission to develop innovative new products to further enhance the consumer experience in music on a truly global basis.”