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Bain plays the Guitar Center for $2.1bn27/06/2007. Source: AltAssets. 
 US-based Guitar Center, Inc. has signed a definitive agreement to be acquired by affiliates of Bain Capital Partners - with the deal's total transaction value, including assumed debt, weighing in at approximately $2.1bn.
Under the terms of the merger agreement, stockholders will receive $63.00 in cash in exchange for each share of Guitar Center common stock they own. This represents a 26 per cent premium across the closing price of Guitar Center's shares on June 26, 2007.
This agreement represents the culmination of an auction process to solicit interest in a potential acquisition of the company. The board of directors of Guitar Center, acting on the recommendation of a Special Committee of independent directors, has approved the merger agreement and recommends that Guitar Center stockholders support the transaction.
'As a retailer of musical instruments in the US, Guitar Center enjoys great brand recognition among musicians nationwide, a loyal customer base, and a track record of significant growth,' commented Jordan Hitch, a managing director at Bain Capital. 'We look forward to working with the company's experienced and capable management team to continue to build the business.'
The transaction is expected to close in the fourth quarter of 2007 and is subject to customary closing conditions, including the approval of Guitar Center's stockholders.
Guitar Center is a retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment.
Bain Capital is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with approximately $50bn in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in 240 companies around the world, including retailers and consumer companies such as Toys 'R' Us, Michaels Stores, Burger King, Warner Music Group, Burlington Coat Factory, Dunkin' Brands, Shopper's Drug Mart, Dollarama and Staples.
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