By Lisa Kerner
Charlotte, N.C., April 26 - Harman International Industries, Inc. entered into an agreement to be acquired by affiliates of Kohlberg Kravis Roberts & Co. LP and GS Capital Partners in a transaction valued at about $8 billion.
Under the agreement, Harman stockholders can elect to receive $120 in cash for each share of Harman common stock or exchange shares of Harman stock for shares in the new corporation incorporated by Kohlberg Kravis Roberts and GS Capital.
Bank of America Securities LLC, Credit Suisse, Goldman Sachs and Lehman Brothers have committed debt financing for the transaction.
The deal was unanimously approved by Harman's board of directors.
Harman has a 50-day go-shop period for alternative transactions from third parties ending on June 15.
The company will continue to be led by founder and executive chairman Sidney Harman under the Harman Industries name following the transaction's close, which is slated for the third quarter of 2007.
"We are pleased to reach an agreement with KKR and GSCP that is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in Harman's future growth," Harman stated in a company news release.
Harman, located in Washington, D.C., manufactures audio products and electronic systems for the automotive, consumer and professional markets.
Kohlberg Kravis Roberts is a New York-based private equity firm specializing in management buyouts. Goldman Sachs' GS Capital Partners family of funds is part of the firm's principal investment area in the merchant banking division.
| Acquirers: | Kohlberg Kravis Roberts & Co. LP and GS Capital Partners
|
| Target: | Harman International Industries, Inc.
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| Transaction total | $8 billion
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| Price per share: | $120 per share, or exchange for shares in newly formed corporation
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| Announcement date: | April 26
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| Expected closing: | Third quarter of 2008
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| Stock price for target: | NYSE: HAR; $102.56 on April 25
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