Guitar Center Purchase Clears Another Hurdle
Feds Approve Buyout
Washington, DC. (July 23, 2007) - The $1.9 billion purchase of Guitar Center Inc. by Bain Capital Partners LLC has been cleared by federal regulators. The deal was on a list of antitrust reviews that received an "early termination" today by the Federal Trade Commission, meaning the review was completed before the end of a 30-day waiting period specified by law. Bain and Guitar Center expect to close the deal in the fourth quarter.
Guitar Center is based in Westlake Village, CA, and operates over 210 stores. The company posted $2 billion in revenue in 2006. Bain is based in Boston, MA and manages about $40 billion in assets.
Two pending lawsuits are challenging the fairness of the acquisition, which nets shareholders a 26 percent premium.