Steinway sways to pvt equity tune
Steinway Musical Instruments announced Monday that it had agreed to be acquired by the private equity firm Kohlberg & Co in a deal worth roughly $438 million.Updated: Jul 02, 2013 23:06 IST
Steinway Musical Instruments announced Monday that it had agreed to be acquired by the private equity firm Kohlberg & Co in a deal worth roughly $438 million.
The offer of $35 a share represents a 33% premium over Steinway's average closing price in the 90 trading days that ended June 28. Compared with the average closing price during the 52 up till then, the offer represents a premium of 45%, the company said.
The deal is the latest twist for the 160-year-old piano maker, whose instruments can be found in concert halls and living rooms around the world.
Kohlberg & Co. emphasized that it would aim to preserve Steinway's storied heritage, in its plans to "accelerate its global expansion, while ensuring the artisanal manufacturing processes that make the company's products unique are preserved, celebrated and treasured".
The deal provides for a so-called go-shop period of 45 days in which Steinway can invite rival bids. Otherwise, the transaction closes in the third quarter of this year.