Gibson Guitar, the musical instrument manufacturer, will enter into a strategic partnership with Onkyo in which it will acquire a majority of Onkyo USA and become the second largest shareholder of Onkyo Corp. in Japan.
Onkyo USA is the parent company's exclusive distributor for North America and a distributor for Central and South America.
Onkyo will also invest in Gibson, and the two companies will form a Hong Kong-based joint venture focusing on design and development of consumer audio products.
In addition, Gibson chairman/CEO Henry Juszkiewicz will take a seat on Onkyo's board of directors, and Onkyo president/CEO CEO Munenori Otsuki will take a position on Gibson's board.
Gibson also owns KRK, Cerwin-Vega! and Stanton.
The partnership is subject to Japanese regulatory approval, the negotiation of definitive agreements, and financing approvals from lenders, the companies said.
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