Kohlberg & Company To Acquire Steinway Musical Instruments Inc

Steinway Musical Instruments Inc announced that it has entered into a definitive agreement to be acquired by an affiliate of Kohlberg & Company in a transaction valued at approximately $438 million. Upon the completion of the transaction, the Company will become a privately held company. Under the terms of the agreement, an affiliate of Kohlberg will commence a tender offer to acquire all of the outstanding shares of the Company's common stock for $35.00 per share in cash, representing a premium of 33% based on the average closing price of the Company's common shares during the 90 trading days ended June 28, 2013, and 45% based on the average closing price during the 52-week period ended June 28, 2013. The board of directors of the Company unanimously recommends that the Company's stockholders tender their shares in the tender offer. Allen & Company LLC is serving as financial advisor to the Company in this transaction. Skadden, Arps, Slate, Meagher & Flom LLP and Gibson, Dunn & Crutcher LLP are acting as legal advisors to the Company. Ropes & Gray LLP is acting as Kohlberg's legal advisor.