Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



$438 Million Deal Will Take Steinway Private

The ivories of storied piano maker Steinway Musical Instruments (UNKNOWN: LVB.DL  ) were tickled to the tune of $438 million, when private equity firm Kohlberg & Co. offered to take the company private, the music maker announced today.

Kohlberg offered Steinway investors $35 a share, which represents a 33% premium over the average closing price during the past 90 trading days, and a 45% premium over its average closing price for the preceding year, according to the company. It's a 15% premium over Friday's closing price

Steinway Musical Instruments Chairman and interim CEO Michael Sweeney said: "Kohlberg 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."

The agreement provides for a 45-day "go-shop" period during which  Steinway can look for a better deal. If none is found, Kohlberg will commence a tender off and any shares not tendered will be acquired in a second-step merger at the same cash price as paid in the tender offer. While there are the customary closing conditions that must be met, along with the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, the deal must also get approval from German antitrust regulators. 

The going-private deal, which was unanimously approved by Steinway's board, is expected to close in the third quarter of 2013. The board recommended shareholders tender their shares in the offer.

Allen & Company is serving as financial advisor to Steinway in this transaction while Skadden, Arps, Slate, Meagher & Flom and Gibson, Dunn & Crutcher are acting as legal advisors. Ropes & Gray is acting as Kohlberg's legal advisor. 

A typical Steinway grand piano costs around $50,000, but can run much higher. Steinway & Sons was founded in 1853 by German immigrant Henry Engelhard Steinway in a loft on Manhattan's lower west side. Steinway was a master cabinet maker who built his first piano in the kitchen of his Seesen, Germany home, according to the company website. Steinway also makes Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, and Ludwig snare drums. Through its online music retailer, ArkivMusic, the company also produces and distributes classical music recordings.

Steinway had previously said it was interested in selling the company. It formally closed on the sale of its famed Steinway Hall on Friday.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518913, ~/Articles/ArticleHandler.aspx, 9/30/2016 2:48:52 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.62 196.17 1.08%
S&P 500 2,172.36 21.23 0.99%
NASD 5,320.66 51.51 0.98%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
LVB.DL $0.00 Down +0.00 +0.00%
Steinway Musical I… CAPS Rating: No stars