Guitar Center Gets Bought

By | June 29, 2007 at 7:44 AM

Guitar Center, Inc.–the largest retailer of musical instruments in the United States–has signed an agreement to be bought out by private investment firm Bain capital for a sum of $2.1 billion. The agreement stipulates that investors will be paid $63 cash for each share they own in the music retail chain, a 26 percent mark-up from its June 26 closing value. This effectively ends an ongoing auction led by Goldman Sachs to find potential buying interest in the company.

While the deal has been approved and recommended by both Guitar Center’s board of directors and management team, shareholders must give their official go-ahead before it can be completely finalized. That is expected to take place late this year.

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