BLOOMFIELD, Conn., Oct. 29 /PRNewswire-FirstCall/ -- (Nasdaq: KAMN)
Kaman Corporation announced today that it has entered into a definitive
agreement to sell its wholly owned subsidiary, Kaman Music Corporation
(KMC), to Fender Musical Instruments Corporation (FMIC) of Scottsdale,
Arizona for approximately $117 million in cash, subject to specified post
closing purchase price adjustments. The stock purchase agreement, which
contains customary representations and warranties and covenants, has been
approved by the Kaman Board of Directors. Closing is targeted to occur
prior to January 1, 2008, subject to the satisfaction of customary closing
conditions, including termination or expiration of the waiting period under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
KMC, which comprises the company's entire Music segment, owns Ovation
Guitars, LP and Toca hand percussion products, Gibraltar Hardware, Genz
Benz Amplification, Hamer Guitars, and is the exclusive U.S. sales
representative for Sabian Cymbals, and exclusive worldwide distributor of
Takamine Guitars and Gretsch Drums. Privately held FMIC is the world's
leading electric guitar manufacturer. In addition to owning the
world-renowned Fender brand name, FMIC also owns Guild guitars, Charvel
Guitars, Jackson Guitars, SWR Bass Amplification, Tacoma Guitars, EVH
products, and is the exclusive worldwide distributor of Gretsch Guitars.
Kaman Chairman and CEO, Paul Kuhn, stated, "We have invested in KMC
over the years to build our leadership position in the industry and KMC has
been a positive contributor to the overall success of Kaman Corporation.
However, our longer-term growth strategy has evolved to a focus on the
aerospace and industrial distribution segments, which has meant finding a
new home for KMC. We are very pleased to have attracted a strategic buyer
of Fender's stature, and we are confident that KMC will have a bright
future under Fender's leadership."
"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 growing operational excellence and ultimately offer dealers and
consumers a better way to access a wider variety of high-quality music
products and accessories."
Edward Miller, President of Kaman Music Corporation added, "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. The
acquisition of Kaman Music by Fender forms the most dynamic partnership of
manufacturing and distribution expertise in the music industry."
Kaman was advised by Lazard and the law firm, Skadden, Arps, Slate,
Meagher & Flom, LLP. Fender was advised by the law firm, Sullivan &
Cromwell LLP.
SOURCE Kaman Corporation
 back to top
Related links:
http://www.kaman.com
http://www.prnewswire.com/comp/480450.html /
CONTACT:
Russell H. Jones, SVP, Chief Investment
Officer & Treasurer of Kaman Corporation, +1-860-243-6307,
russell.jones@kaman.com
|
