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Guru3D.com » News » JVC merges with Kenwood

JVC merges with Kenwood

by Hilbert Hagedoorn on: 05/14/2008 08:54 AM | source: | 0 comment(s)
Well known home electronics makers JVC and Kenwood announced they will set up a joint holding company called JVC Kenwood Holdings. The firm will focus on car and home audio electronics and will aim to quadruple operating profit in three years.
The new entity, to be called JVC Kenwood Holdings, will aim to quadruple operating profit in three years, the two companies said in a statement. The joint holding company will be created Oct. 1.

The move is the latest stage of a long-running combination plan that underscores the pressure for consolidation as competition intensifies among Japan's crowded field of small to mid-size consumer device makers.

An onslaught of South Korean and Chinese rivals have driven prices lower, and the high investment costs for digital appliances have squeezed profits, JVC and Kenwood said.

Victor, best known for its JVC brand of home electronics goods, and Kenwood, famous for its car audio systems, set share swap terms for the deal to which they agreed in principle last summer.

Under terms of the deal, Victor holders will have the right to two shares in the new holding structure for each Victor share owned, while Kenwood investors will qualify for one share in the new company for each Kenwood share owned.






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