(CORRECTION: KKR was erroneously included as the purchaser of Steinway instead of Kohlberg & Co.)
The financial support for the acquisition by Kohlberg & Co of Steinway Musical Instruments Inc would be provided by the Macquarie Group Ltd and the General Electric Capital Corp. This support would provide finances for the firm's buyout of the piano maker amounting to US$438 million.
The musical instrument manufacturer confirmed through documents filed with regulators that the hedge fund firm would be contributing cash for the transaction. There would be a termination fee amounting to US$13.35 million should the transaction fail to push through.
The piano maker had agreed to be privatized after seventeen years of being publicly traded. The agreement would include having a Kohlberg affiliate tendering for all the company's outstanding shares of stock, according to a statement released yesterday.
The deal also has a 45 day period wherein Waltham, MA based Steinway to review and accept bids for the company.
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