By Lisa Kerner
Charlotte, N.C., June 27 - Guitar Center, Inc. agreed to be acquired by affiliates of Bain Capital Partners, LLC for $63.00 in cash per share, ending the auction process led by Goldman Sachs & Co.
The transaction, valued at about $2.1 billion including debt, is expected to close in the fourth quarter of 2007.
Guitar Center's board of directors approved the deal and recommends its stockholders do the same.
"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," Guitar Center chairman and chief executive officer Marty Albertson stated in a company news release.
"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."
Guitar Center, based in Westlake Village, Calif., is a musical instrument and recording equipment retailer.
Bain Capital is a Boston-based global private investment firm with $50 billion in assets under management.
| Acquirer: | Bain Capital Partners, LLC
|
| Target: | Guitar Center, Inc.
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| Transaction total: | $2.1 billion
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| Price per share: | $63.00
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| Announcement date: | June 27
|
| Expected closing: | Fourth quarter of 2007
|
| Stock price for target: | Nasdaq: GTRC: $50.06 on June 26
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