Steinway Musical Instruments, famous for its grand pianos, announced Wednesday that hedge fund firm Paulson & Co. has signed an acquisition agreement.
New York-based Paulson & Co., founded and run by John Paulson, will purchase Steinway Musical for $40 per share, with the total transaction valued at approximately $512 million. Upon the deal’s completion, Steinway will become a privately-held company.
The statement also said that Steinway has 25 days to accept an outside offer.
Steinway will also pay private equity firm Kohlberg & Company $6.7 million for terminating their previously announced merger agreement.
The transaction is expected to close in late September.
With additional offices in London and Hong Kong, Paulson & Co. manages approximately $18 billion in assets. Steinway specializes in the design, manufacture, marketing and distribution of high quality musical instruments.