JULY 3 I STEINWAY I ACQUISITION
Steinway Musical Instruments has been acquired by an affiliate of Kohlberg & Company, a private equity investment firm, in a deal worth roughly $438 million.
An affiliate of Kohlberg will commence a tender offer to acquire all of the outstanding shares of the company's common stock for $35 per share in cash, representing a 33 percent premium over Steinway’s average closing price in the 90 trading days that ended June 28.
"Our agreement with Kohlberg represents an exceptional valuation for our shareholders, while also representing an important next step in the growth of Steinway," said Michael Sweeney, chairman and interim CEO of Steinway. "Kolhberg has long been one of America's premier private investment firms. We are delighted that they recognize the bright future for Steinway as well as value our great heritage. We look forward to this partnership as we continue our mission of making the world's finest musical instruments without compromise."
"For over 160 years, Steinway's skilled manufacturing artisans have been crafting the world's finest musical instruments to perform with unequalled touch and tone," said Christopher Anderson, Kohlberg partner. "We feel fortunate to be selected to partner with Steinway and further its commitment to serving its artists and customers worldwide by producing the finest pianos and music instruments available."
The agreement provides for a 45-day "go-shop" period where Steinway may solicit alternative proposals to the transaction with Kohlberg, including waiving any existing standstill agreements.
Steinway also announced that it has closed the sale of Steinway Hall, a 247,000-square-foot, 16-story building that houses the company's flagship retail showroom. The building is located near Carnegie Hall in Manhattan. Steinway retains the right to occupy the building through September 2014.