Wednesday, 25 May 2016
Last updated 14 hours ago
Jul 2 2013 | 2:27am ET
A legendary name in private equity has acquired a legendary name in piano-making.
Kohlberg & Co., which is led by Kohlberg Kravis Roberts co-founder Jerome Kohlberg, agreed to pay about $438 million for Steinway Musical Instruments, best known as the maker of Steinway & Sons pianos.
Kohlberg aims to “accelerate” Steinway’s “global expansion, while ensuring the artisanal manufacturing processes that make the company’s products unique are preserved, celebrated and treasured,” the firm’s Christopher Anderson said.
“Our agreement with Kohlberg represents an exceptional valuation for our shareholders, while also representing an important next step in the growth of Steinway,” Steinway interim CEO Michael Sweeney said. “We are delighted that they recognize the bright future for Steinway as well as value our great heritage.”
The deal faces a 45-day go-shop period, in which rival bidders can make offers for the company. Should none come, the acquisition is expected to close in the third quarter.