Piano manufacturer Steinway Musical Instruments Inc. has been sold for £289m ($438m) to the private equity firm, Kohlberg & Co. The 160-year old Steinway company had already expressed an interest in selling and the current agreement includes a 45-day period in which they may consider other offers.
The deal gives shareholders a 15% premium over the share price last Friday while share prices shot up by the same amount as news of the deal broke.
Though best known for their pianos, Steinway Musical Instruments Inc. also own Selmer saxophones, CG French Horns and Stradivarius trumpets. They hold 127 patents for musical instruments.
Company founder, Heinrich Engelhard Steinweg, first made pianos at his home in Seesen, Lower Saxony. He emigrated to Manhattan in 1850 with his wife and nine children, founding Steinway and Sons in 1853.
Christopher Anderson, a partner of Kohlberg & Co. said he hoped to expand the Steinway brand globally 'while ensuring the artisanal manufacturing processes that make the company's products unique are preserved, celebrated and treasured.'