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Steinway, which has built the pianos used by some of the world's greatest classical musicians for more than 160 years, today said it was being taken private in a USD 438 million deal with private equity group Kohlberg & Co.
New York-based Steinway Musical Instruments, Inc. , which owns the iconic Steinway & Sons piano brand, said Kohlberg will offer to acquire all the outstanding shares of the company for USD 35 a share, a premium of 15 per cent from Friday's close.
Steinway said the deal would help it build its global business without diminishing the legendary quality of its pianos, renowned for their sound and touch.
"For over 160 years, Steinway's skilled manufacturing artisans have been crafting the world's finest musical instruments," said Kohlberg partner Christopher Anderson in a statement.
"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 are preserved, celebrated and treasured."
Steinway pianos, under the original Steinway & Sons name, are built in New York and Hamburg, Germany.
They have been used by some of the world's greatest musicians, including Arthur Rubinstein, Ignacy Paderewski, and Vladimir Horowitz, and are played by current luminaries Evgeny Kissin, Mitsuko Uchida and Lang Lang.
Steinway shares were up 15.6 per cent to USD 35.19 in mid-morning trade.
