Agreement Announced
Scottsdale, AZ (Oct. 29, 2007) - Fender Musical Instruments Corporation announced today that it has entered a definitive agreement to acquire Kaman Music Corporation, a wholly-owned subsidiary of parent company Kaman Corp. Kaman owns Ovation Guitars, Hamer Guitars, Genz Benz Amplification, Gibraltar Hardware, LP Percussion and Toca Percussion. The company is also the exclusive U.S. sales representative for Sabian Cymbals and the exclusive worldwide distributor of Takamine Guitars and Gretsch Drums.
The deal is worth $117 million in cash, subject to specified post-closing purchase price adjustments.
“We are delighted to welcome the Kaman Music Corporation into the Fender Family,” said Bill Mendello, Chairman and Chief Executive Officer of Fender Musical Instruments Corp. “KMC is one of the most respected companies in the musical instrument industry. We have very similar cultures that have been developed over many years. The distribution expertise that Kaman Music brings to the music marketplace will complement and strengthen FMIC’s service to its dealers and consumers.”
Kaman Music Corporation will continue to be led by current President, Edward Miller. Miller has 35 years of experience with Kaman, having joined the company in 1972 and later serving as Executive Vice President and Chief Operating Officer. He was appointed President of Kaman Music Corp. in June of 2007.
“There is great synergy between Kaman Music and Fender, both of which are deeply rooted in the long history and colorful culture of popular music,” said Edward Miller, president of Kaman Music Corporation. “The acquisition of Kaman Music by Fender forms the most dynamic partnership in the music industry. I believe that our collective customers will benefit greatly from this combination.”
Commenting on the announcement, Matt Janopaul, President and Chief Operating Officer of FMIC said, “FMIC is a proven steward of great brands, and the acquisition of KMC is consistent with this long-term growth strategy. We have great respect for what KMC’s seasoned management team has accomplished over the past forty plus years. This is an amazing company that today under Ed Miller’s leadership has numerous opportunities both domestically and internationally. We look forward to providing KMC with the resources to accomplish these goals.”
Kaman Corporation conducts business in two other market segments -- the aerospace and industrial distribution sectors. According to a memo from Miller to Kaman Music Corporation employees, the buyout allows Kaman to focus on its "more core" businesses.
"Given that it was time for Kaman Corporation to seek a new home for Kaman Music, I believe the acquisition by Fender is the best outcome for us," Miller wrote. "The culture at Fender is very similar to Kaman Music and, as the two companies interact throughout this transition, I know you will see the potential in the partnership."
Fender is the world’s leading guitar manufacturer with brands that include Fender, Squier, Guild, Gretsch, Jackson, Charvel, SWR, EVH, Tacoma, Olympia and Brand X.
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