It happened!
Guitar Center "SOLD" and Officially Goes Private
(Port Washington, NY - June 27, 2007) The long-rumored Guitar Center news has happened. Bain Capital Partners LLC snapped up the retailer this morning for $2.1 billion, including debt, in a leveraged buyout transaction. Bain will pay GC shareholders $63 a share, a 26 percent premium over its June 26 closing price of $50.06.
"We believe this transaction delivers outstanding value for our stockholders, and is a strong validation of the company's accomplishments over the years as well as our future growth prospects," said Marty Albertson, chairman and CEO of Guitar Center. "Following a comprehensive review process, our board of directors concluded this transaction is in the best interests of our company and our stockholders and it has the full support of the management team. Bain Capital has a successful track record and significant investment experience in the retail industry and we look forward to partnering with them going forward. We are committed to maintaining our vendor relationships and ensuring our customers will continue to experience the same quality and selection of musical instrument products as well as the high level of service and professional advice through our stores and our websites."
"As the leading retailer of musical instruments in the U.S., Guitar Center enjoys great brand recognition among musicians nationwide, a loyal customer base, and a track record of significant growth," said Jordan Hitch, a Managing Director at Bain Capital. "We look forward to working with the Company's experienced and capable management team to continue to build the business."
The deal includes a payout of $1.9 billion in cash, with the rest being assumption of debt. The deal is expected to close in the fourth quarter. The Music & Sound Retailer reported a month ago that GC hired an advisor to help faciliate a sale. That advisor turned out to be Goldman Sachs. We originally mentioned the possibility of Guitar Center going private in a January story named "What's the Future of Guitar Center?"
Bain is known for several LBO transactions, including Toys 'R Us, Burlington Coat Factory, and Michael's.
Guitar Center "SOLD" and Officially Goes Private
(Port Washington, NY - June 27, 2007) The long-rumored Guitar Center news has happened. Bain Capital Partners LLC snapped up the retailer this morning for $2.1 billion, including debt, in a leveraged buyout transaction. Bain will pay GC shareholders $63 a share, a 26 percent premium over its June 26 closing price of $50.06.
"We believe this transaction delivers outstanding value for our stockholders, and is a strong validation of the company's accomplishments over the years as well as our future growth prospects," said Marty Albertson, chairman and CEO of Guitar Center. "Following a comprehensive review process, our board of directors concluded this transaction is in the best interests of our company and our stockholders and it has the full support of the management team. Bain Capital has a successful track record and significant investment experience in the retail industry and we look forward to partnering with them going forward. We are committed to maintaining our vendor relationships and ensuring our customers will continue to experience the same quality and selection of musical instrument products as well as the high level of service and professional advice through our stores and our websites."
"As the leading retailer of musical instruments in the U.S., Guitar Center enjoys great brand recognition among musicians nationwide, a loyal customer base, and a track record of significant growth," said Jordan Hitch, a Managing Director at Bain Capital. "We look forward to working with the Company's experienced and capable management team to continue to build the business."
The deal includes a payout of $1.9 billion in cash, with the rest being assumption of debt. The deal is expected to close in the fourth quarter. The Music & Sound Retailer reported a month ago that GC hired an advisor to help faciliate a sale. That advisor turned out to be Goldman Sachs. We originally mentioned the possibility of Guitar Center going private in a January story named "What's the Future of Guitar Center?"
Bain is known for several LBO transactions, including Toys 'R Us, Burlington Coat Factory, and Michael's.
