U.S-based musical instrument manufacturer Gibson Guitar has bought a controlling stake in Japan’s TEAC for about US$52 million or 54 per cent.
The transaction, which was unanimously approved by the Boards of Directors of both companies, will mean Gibson can add ‘Cool Japan’ engineering technology and innovation to the music and audio lifestyle arena.
Upon completion of the acquisition, TEAC will become a member of the Gibson family. This will not only expand the Gibson’s size and reach, but it also will help add value to the Gibson MI segments and the fretted instrument category. The company plans to expand further into the Asian market for all Gibson product, leverage Teac’s R&D expertise and lower operation costs in selected segments with the U.S.
“While there are a lot of details to be worked out at head office level like management structures, product strategies and roadmaps, manufacturing, etc. We can only see a lot more positives coming from this new venture where there will be stronger synergies between the two brands and presence worldwide, more new products and emerging technologies,�? TEAC Australia head of product and marketing, Daniel Seow, told TT.
“The Gibson Les Paul brand is very strong worldwide for its musical instruments and TEAC is very strong for their high quality audio technology and designs. This looks like good marriage.�?
This is the second transaction Gibson has made in Japan. In January 2012, Gibson announced a strategic alliance with Onkyo, a worldwide leader in consumer audio, where both companies made investments into each other.