Steinway accepts $438M buyout from Kohlberg & Co

[Steve]

http://www.detroitnews.com/article/...erg-Co-?odyssey=mod|newswell|text|FRONTPAGE|s

Waltham, Mass. — The famed piano maker Steinway is being acquired by private equity firm Kohlberg & Co. for about $438 million.
Steinway, which has been in business for 160 years, said previously that it was looking into selling the company.


Kohlberg, which would take the company private, will start a tender offer to buy all of Steinway’s outstanding stock for $35 per share, a 15 percent premium to its Friday closing price of $30.43.


The board of the Waltham, Mass., company unanimously recommended Monday that shareholders tender their stock.
The deal includes a 45-day “go-shop” period in which Steinway may seek out alternative bids.


Steinway & Sons was founded in 1853 in a loft on Manhattan’s lower west side. Its products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos.


“Kohlberg’s long history of collaboration to grow and expand some of the world’s leading consumer brands makes us an ideal partner for Steinway to accelerate its global expansion, while ensuring the artisanal manufacturing processes that make the company’s products unique are preserved, celebrated and treasured,” Kohlberg partner Christopher Anderson said.


The transaction is expected to close in the third quarter.


From The Detroit News: http://www.detroitnews.com/article/20130701/BIZ/307010085#ixzz2XpAM7TBL

 

[Gandalfe]

Notice how this *doesn't* make any of the big media headlines.

 

[Steve]

I'd hate to see them sell off the pieces to the highest bidder

but then, there's not many bidders around anymore except the employees, Selmer-Conn and the Buffet-Group.
Though Steinway and Selmer Paris, Bach and Ludwig are the top names of that group. leblanc clarinets (what's left of it) and Conn FHs (which are nice) & King trombones are just there to fill in the instrument offerings me thinks ....

 

[snakeman5001]

Interesting, but doesn't Steinway make just pianos? Do they actually make woodwind instruments?

 

[SOTSDO]

The overall holding company owns a number of other firms, including Buffet and Selmer. Leblanc and Boosey-Hawkes.

 

[pete]

Notice how this *doesn't* make any of the big media headlines.

I actually heard about this last week on National Public Radio, so there .

Does/did Steinway actually "own" Selmer Paris? I thought that they owned Selmer USA and imported Selmer Paris instruments.

 

[ChloeSteffan]

The overall organization operates a number of other companies, such as marketing and other slemer also .

 

[Jacques5646]

Good news they didn't go bankupt, bad news they've been bought by a private equity firm. Unless the firm's CEO is a music fan, these investors' aim is, of course, a hefty and quick profit. Often this profit comes with the selling of the best assets and the dismantling of the less profitable branches. And thus the woodwinds sections might suffer.