Steinway accepts $438M buyout from Kohlberg & Co.AP , Associated Press
Jul. 1, 2013 9:38 AM ET
WALTHAM, Mass. (AP) — 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 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.
Shares of Steinway Musical Instruments Inc. jumped 15 percent in early trading.