Victor Company of Japan, Limited (“JVC”) and Kenwood Corporation (“KENWOOD”) (collectively, “Both Companies”) established a joint holding company, “JVCKENWOOD Holdings, Inc.” on October 1, 2008 through share transfer, and carried out a management integration.
Accompanying the establishment, JVCKENWOOD Holdings, Inc. was listed as of the same day in the First Section of the Tokyo Stock Exchange, and became parent company with ownership of 100% of the shares of Both Companies, which have now become delisted business companies.
Moreover, in preparation for this management integration, on October 1, 2007 Both Companies established the “J&K Technologies Corp.”(“J&K Technologies”) technological development joint venture, for materialization of synergies through joint technological development in the Car Electronics and Home Audio businesses?the common business segments of Both Companies, and aiming at maximization of synergies in the Car Electronics Business at an early stage, from which the greatest synergies can be expected, and it was decided that J&K Technologies’ operations would be expanded to development, design, procurement and production from joint technological development alone.
Then, as of October 1, 2008, by means of company split (simplified absorption-type split or kani-kyushu-bunkatsu), the functions of development, design, procurement, and production, which are directly linked to cost competitiveness in the Car Electronics Business of Both Companies, were succeeded to J&K Technologies, and meanwhile the six development/manufacturing subsidiaries of Both Companies involved in Car Electronics Business were changed to subsidiaries of J&K Technologies, and J&K Technologies was reestablished as a new Car Electronics Business Company with a total of 6,000 personnel. And the product planning and marketing functions will be integrated, J&K Technologies was renamed as J&K Car Electronics on June 24.
Accordingly, to make it possible to survive in the digital era and striving to enhance our competitiveness and profitability, JVCKENWOOD Group will allow the corporate infrastructures that Both Companies have built to evolve into a new foundation for corporate survival, and meanwhile, through the addition of synergies resulting from the management integration, we will grow and build corporate value and aim to secure our status as a specialized manufacturer to lead the world.