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MellowCello

Steinway sells out!!

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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 it 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. Its products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos.


“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,” Kohlberg partner Christopher Anderson said.


Shares of Steinway Musical Instruments Inc. jumped $4.62, or 15 percent, to $35.05 in morning trading. Shares this year have risen close to 70 percent.


The transaction is expected to close in the third quarter.

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In todays markets that seems like a bit of a bargain price to me. Also seems that the bean counters always are first through the door to 'streamline' production. We all know what that can mean.

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In todays markets that seems like a bit of a bargain price to me. Also seems that the bean counters always are first through the door to 'streamline' production. We all know what that can mean.

Shiploads of crated equipment headed for Shanghai?

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So far the digital pianos are a far cry from a good acoustic piano, like a good Steinway M or better.  For a classical pianist there is no question that a real piano is superior.  Although digital pianos now have dynamic control through the keys the player can't control the tone through how the keys are pressed down as can be done on a good acoustic piano.  My concern is that the quality of Steinway pianos will suffer.  As it is there has been something of a decline in quality in recent decades.  Regarding the issue of whether digital "pianos" will replace acoustic pianos, the existence of many high grade acoustic piano manufacturers (Steinway, Yamaha, Kawai, Fazzioli, Bozendorfer, etc.) should indicate that the demand is still there. 

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To Gowen, Of course, digital pianos are a FAR CRY from good acoustic pianos. NO argument there. My concern about QUALITY of Steinway pianos under Kohlberg is shared. Just the fact, that they are closing Steinway Hall, is in blatant disregard of an established landmark and its bountiful tradition. Sad that what followed Steinway's sale was shutdown of Beethoven pianos on piano row. Looks like all that's left is Klavierhaus and Faust Harrison. I played a $750,000 Steinway at Klavierhaus and sampled Fazioli..impressive instruments...

 

http://arioso7.wordpress.com/2013/05/29/the-premier-piano-haus-on-w-58th-and-its-750000-piano/

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