WALTHAM, Mass., May 19 /PRNewswire-FirstCall/ -- Steinway Musical
Instruments, Inc. (NYSE: LVB) today announced that it has acquired
ArkivMusic, LLC, an online retailer of classical music recordings.
Specializing in the efficient delivery of a broad selection of classical
music titles direct to the consumer, ArkivMusic sells over 90,000 titles,
including thousands of previously out-of-print recordings produced
"on-demand" through its ArkivCD program. The company's annual revenue
growth rate has accelerated over the last four years, exceeding 30% in
2007, with sales last year of just over $8 million. ArkivMusic will
continue to operate independently as a wholly owned subsidiary of Steinway.
CEO Dana Messina commented, "We are excited to have ArkivMusic and its
employees join Steinway. We share a passion for supporting outstanding
music and musicians, and ArkivMusic is one of the shining lights in the
classical music business these days. This acquisition will help Steinway
promote thousands of musicians that use our instruments around the globe."
ArkivMusic's President Eric Feidner said, "We are extremely excited to
join forces with Steinway. We believe the reach and resources of Steinway
can help us achieve our global growth strategy. It is a privilege to become
part of the fine tradition and values that Steinway represents to musicians
and music fans worldwide. We believe our growing business and extensive
relationships with customers, record labels and radio will add considerable
value to a dynamic brand in classical music."
Steinway will pay $3 million in cash at closing and three annual
payments of approximately $0.5 million. The transaction involves additional
potential consideration based on ArkivMusic's results over the next three
years. The Company does not expect the purchase to have a material impact
on earnings in 2008.
About Steinway Musical Instruments
Steinway Musical Instruments, Inc., through its Steinway and
Conn-Selmer divisions, is one of the world's leading manufacturers of
musical instruments. Its notable products include Bach Stradivarius
trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc
clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos.
About ArkivMusic
ArkivMusic -- The Source for Classical Music(TM) (http://www.arkivmusic.com)
is an online retailer of classical music focused on offering a vast
selection of classical titles through an intuitive interface and a
decentralized distribution platform. Since opening its online store in
February 2002, ArkivMusic has built the largest selection of classical
music recordings in the U.S., with access to over 90,000 titles from over
1,500 labels shipped from 20 distribution centers. In keeping with its
mission of preservation, promotion, and efficient distribution of classical
music, ArkivMusic's innovative production-on-demand ArkivCD program allows
consumers to find and purchase out-of-print recordings alongside the
in-print catalog.
"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995
This release contains "forward-looking statements" which represent the
Company's present expectations or beliefs concerning future events. The
Company cautions that such statements are necessarily based on certain
assumptions which are subject to risks and uncertainties which could cause
actual results to differ materially from those indicated in this release.
These risk factors include the following: changes in general economic
conditions; recent geopolitical events; increased competition; work
stoppages and slowdowns; impact of dealer consolidations on orders; ability
of new workers to meet desired production levels; exchange rate
fluctuations; variations in the mix of products sold; market acceptance of
new product and distribution strategies; ability of suppliers to meet
demand; concentration of credit risk; fluctuations in effective tax rates
resulting from shifts in sources of income; and the ability to successfully
integrate and operate acquired businesses. Further information on these
risk factors is included in the Company's filings with the Securities and
Exchange Commission.
Contact: Julie A. Theriault
Telephone: 781-894-9770
Email: ir@steinwaymusical.com
SOURCE Steinway Musical Instruments, Inc.
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Related links:
http://www.steinwaymusical.com
http://www.arkivmusic.com
CONTACT:
Julie A. Theriault of Steinway Musical
Instruments, Inc., +1-781-894-9770, ir@steinwaymusical.com
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