Steinway Bought for $438M by Kohlberg & Co.

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The world’s most popular piano manufacturer, Steinway, will be singing a different tune soon enough, now that private equity firm Kohlberg & Co is buying them for $438 million. That’s 160 years of stellar expansion, starting out in Waltham, Massachusetts before building a shop across Carnegie Hall in Manhattan where their pianos have been tested and coveted for decades.

But that building, Steinway Hall, was sold in March, and times have been tough.

  

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Nevertheless, Kohlberg is offering to buy the outstanding stock at $35 per share, a 15 percent premium to Friday’s closing $30.43.

“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 unique are preserved, celebrated and treasured,” said Kohlberg partner Christopher Anderson, as reported by the Associated Press.

“Our agreement with Kohlberg represents an exceptional valuation for our shareholders, while also representing an important next step in the growth of Steinway,” Michael Sweeney, chairman and interim chief executive of Steinway. “We are delighted that they recognize the bright future for Steinway as well as value our great heritage.”