Gibson Guitar to buy TEAC, add "Cool Japan" engineering technology

TOKYO Fri Mar 29, 2013 3:26am EDT

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TOKYO (Reuters) - Gibson Guitar GIBSN.UL, known for producing electric guitars used legendary rock guitarists such as Jimmy Page and Jeff Beck, said on Friday that it was buying a majority share in Japanese audio equipment manufacturer TEAC Corp (6803.T) for 4.88 billion yen ($51.9 million).

Nashville-based Gibson, which will pay 31 yen per share for TEAC, said the deal would add "Cool Japan" engineering technology into the music and audio lifestyle arena into which it is diversifying.

Gibson said it will purchase 54.4 percent of TEAC's outstanding shares from funds operated by Phoenix Capital.

(Reporting by Shinichi Saoshiro; Editing by Matt Driskill)