Phoenix Capital exits Japan’s TEAC to Gibson Guitar

Distress specialist Phoenix will exit 157.5 million shares - or a 54.4% stake -  TEAC at JPY31 apiece. According to AVCJ Research, the private equity firm bought a 62.72% stake in TEAC for $96.99 million in 2005. Two years later, it acquired an additional 8.6% in the audio equipment maker.

Following Gibson's investment, TEAC will remain listed on the Tokyo Stock Exchange and existing management will remain in place.

"We are delighted to welcome TEAC and its talented employees to the Gibson family," said Henry E. Juszkiewicz, chairman and CEO of Gibson, in a statement. "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 Guitar sells a variety of brand name musical instruments, including the iconic Gibson Les Paul guitar. The company sees the investment in TEAC as a means of expanding its product range and geographical footprint.

TEAC, which was founded in 1953 as Tokyo Electro Acoustic Company, produces high-grade audio video electronics, consumer electronics, computer data recording and storage devices, computer peripherals and professional recording equipment as well as disc publishing products. Its leading brand is Esoteric.

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• Topics
• North Asia
• Consumer
• Exits
• Phoenix Capital
• Consumer
• Japan
• Exit