Guitar Center to Change Hands

Subject: Guitar Center to Change Hands
From: Amos
Date: 27 Jun 07 - 05:39 PM

June 27 (Bloomberg) -- Guitar Center Inc., the largest U.S. retailer of musical instruments, agreed to be bought by Bain Capital Partners LLC for $1.9 billion.

Bain will pay $63 a share in cash, Guitar Center said today in a statement, 26 percent more than the stock's closing price yesterday. The buyout firm will also assume Guitar Center's debt, bringing the total transaction value to $2.1 billion.

Guitar Center sells Fender guitars, Pearl drums and Yamaha keyboards at more than 210 U.S. stores and online. Bain was part of a group that agreed last week to buy Home Depot Inc.'s contractor-supply unit for $10.3 billion, and has also invested in retailers Toys ``R'' Us Inc. and Michaels Stores Inc.

``They are the market leader in the musical instruments business,'' said Joan Storms, an analyst at Wedbush Morgan Securities in Los Angeles who rates the shares ``hold.'' ``They put mom-and-pops out of business when they come into town.''

Guitar Center reported revenue gains of at least 12 percent every quarter since 1998. Sales climbed 14 percent to $2.03 billion last year, a sixfold increase since the company went public in 1997.

The shares jumped $9.92, or 20 percent, to $59.98 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The stock has almost quadrupled since its initial share sale at $15.

Guitar Center began in 1959 when former car salesman Wayne Mitchell purchased a small appliance and organ store in Hollywood, California. In 1964, Mitchell converted a movie theater next door and opened the first Guitar Center on Sunset Boulevard.

(From Bloomberg.com)

Subject: RE: Guitar Center to Change Hands
From: GUEST,TJ in San Diego
Date: 27 Jun 07 - 05:50 PM

Can Wal Mart be far behind? I'll still prefer to go to a well-stocked and well-connected smaller shop, where I can get good service and a luthier's care and where I won't have to contend with small armies of ill-mannered folks who all think they are the next "American Idol." The extra money it might cost is worth it to me, just to avoid the aggravation. Welcome to MEGAGUITAR!

Subject: RE: Guitar Center to Change Hands
From: Genie
Date: 28 Jun 07 - 05:02 AM

Does this have anything to do with Guitar Center having a giant "Midnight Madness" sale this coming Saturday at all its retail stores, including giving away many items and drastically slashing prices on others?

The sale is from 10A to midnight on June 30, 2007.

Subject: RE: Guitar Center to Change Hands
From: harpmolly
Date: 28 Jun 07 - 09:20 PM

Thanks TJ...we appreciate it! :)