VTech to acquire manufacturing facility from Pioneer

Vtech Holdings Limited says it has signed an agreement with Pioneer Corporation under which Vtech will acquire a manufacturing facility in Malaysia owned by Pioneer’s Malaysian subsidiary. The acquisition of the facility includes its fixed assets and business in manufacturing audio equipment tailored for DJs, producers and artists, a press release reads. The addition of the manufacturing facility aims to strengthen VTech Contract Manufacturing Services' (CMS) position as a manufacturer of professional audio equipment. It also adds 25% to its manufacturing capacity, with further potential for expansion. "This acquisition will further enhance VTech CMS's expertise in professional audio equipment," said Andy Leung, CEO of Contract Manufacturing Services. "As part of our strategic initiatives, the addition of a manufacturing site outside of China expands our global footprint in better serving the needs of our customers." The acquisition is expected to close in the third quarter of 2018 and is subject to certain closing conditions in the agreement.