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Location: out there | To Fender.
not a joke. |
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Posts: 5328
Location: Cicero, NY | http://money.cnn.com/news/newsfeeds/articles/prnewswire/NYM06729102... |
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Posts: 10582
Location: NJ | Kaman Announces Agreement to Sell Music Segment
BLOOMFIELD, Conn., Oct. 29 /PRNewswire-FirstCall/ -- (Nasdaq: KAMN) Kaman Corporation announced today that it has entered into a definitive agreement to sell its wholly owned subsidiary, Kaman Music Corporation (KMC), to Fender Musical Instruments Corporation (FMIC) of Scottsdale, Arizona for approximately $117 million in cash, subject to specified post closing purchase price adjustments. The stock purchase agreement, which contains customary representations and warranties and covenants, has been approved by the Kaman Board of Directors. Closing is targeted to occur prior to January 1, 2008, subject to the satisfaction of customary closing conditions, including termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
KMC, which comprises the company's entire Music segment, owns Ovation Guitars, LP and Toca hand percussion products, Gibraltar Hardware, Genz Benz Amplification, Hamer Guitars, and is the exclusive U.S. sales representative for Sabian Cymbals, and exclusive worldwide distributor of Takamine Guitars and Gretsch Drums. Privately held FMIC is the world's leading electric guitar manufacturer. In addition to owning the world-renowned Fender brand name, FMIC also owns Guild guitars, Charvel Guitars, Jackson Guitars, SWR Bass Amplification, Tacoma Guitars, EVH products, and is the exclusive worldwide distributor of Gretsch Guitars.
Kaman Chairman and CEO, Paul Kuhn, stated, "We have invested in KMC over the years to build our leadership position in the industry and KMC has been a positive contributor to the overall success of Kaman Corporation. However, our longer-term growth strategy has evolved to a focus on the aerospace and industrial distribution segments, which has meant finding a new home for KMC. We are very pleased to have attracted a strategic buyer of Fender's stature, and we are confident that KMC will have a bright future under Fender's leadership."
"We are delighted to welcome the Kaman Music Corporation into the Fender Family," said Bill Mendello, Chairman and Chief Executive Officer of Fender Musical Instruments Corp. "KMC is one of the most respected companies in the musical instrument industry. We have very similar cultures that have been developed over many years. The distribution expertise that Kaman Music brings to the music marketplace will complement and strengthen FMIC's growing operational excellence and ultimately offer dealers and consumers a better way to access a wider variety of high-quality music products and accessories."
Edward Miller, President of Kaman Music Corporation added, "There is great synergy between Kaman Music and Fender, both of which are deeply rooted in the long history and colorful culture of popular music. The acquisition of Kaman Music by Fender forms the most dynamic partnership of manufacturing and distribution expertise in the music industry."
Kaman was advised by Lazard and the law firm, Skadden, Arps, Slate, Meagher & Flom, LLP. Fender was advised by the law firm, Sullivan & Cromwell LLP.
SOURCE Kaman Corporation
CONTACT: Russell H. Jones, SVP, Chief Investment Officer & Treasurer of
Kaman Corporation, +1-860-243-6307, russell.jones@kaman.com |
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Location: Colorado Rocky Mountains | Interesting. Now that Gretsch drums will be included in the Fender business empire, maybe Fender can finally go back and add "Broadcaster" to their Nocasters.
Seriously, I look forward to hearing from the experts on this one. |
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Posts: 1900
| Good, now Fender has quality acoustic-electric guitars. ;) |
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Location: NJ | Time t'start stocking-up on "pre-Fender" Ovations . . . |
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Posts: 1900
| Maybe Fender considers Kaman a good investment, so "if it ain't broke don't fix it"... |
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Posts: 4389
Location: Capital District, NY, USA Minor Outlying Islands | $117 Million. Cash. Should've paid more, but who am I to argue with investment bankers. I don't think FMIC is publicly traded, so there goes another chance to own a guitar company.
Short term probably a good idea for the stock holders, long term, not so sure, only time will tell. For me, the fun factor of owning Kaman just sunk.
I wish 'em luck. |
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Location: Pacific Northwest Inland Empire | I'm a bottomfeeder. Whadda I know 'bout this stuff? |
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Posts: 1900
| Both Kaman and Fender did what their 'lawfirms' told 'em to do... wonder how many of them dudes plays a guitar?... :rolleyes: |
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Posts: 4037
Location: Utah | Originally posted by Steve:
Both Kaman and Fender did what their 'lawfirms' told 'em to do... wonder how many of them dudes plays a guitar?... :rolleyes: Ha! None. They pay for whatever entertainment they want, because they don't have leisure time.
My dad used to work for Sullivan & Cromwell on the management side. Retired ten years or so ago. The lawyers work 70+ hrs per week, and the starting pay is upwards of a million bucks. The senior partners make rock-star incomes. But they pay for it with no personal time at all. |
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Location: Capital District, NY, USA Minor Outlying Islands | They're the kind of people who buy guitars for investment purposes.
My gut says that this was stragic for Fender, as for Kaman, well, they're getting out of a business they don't want, obviously. I think Fender bought it cheap. It think in this situation, the lawyers were like bus drivers, following the directions of Fender. It's generally the investment bankers who tell people what to do.
Let me add also, that most of those wall street lawyers are overpaid but that's a topic for another thread. |
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Posts: 15663
Location: SoCal | I wouldn't be surprised if Kaman had been sending out feelers for several years regarding the selling of KMC. It was Charlie's passion, then Bill's. When the family finally was out of the company several years ago, the suits at Kaman probably started looking for a buyer.
I believe, that in Fender, they picked well. But how it's going to affect KMC, I don't know.... |
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Posts: 14842
Location: NJ | I'm surprised it wasn't Yamaha . . . |
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Posts: 234
Location: Phoenix, AZ | Geez, I feel like I'm in another remake of "Invasion of the Body Snatchers".
P.S. While Fender hasn't ruined Guild, Fender does have a history of somewhat dramatically raising prices as quickly as possible. The days of affordable Ovations may be fast coming to a close. |
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Posts: 10777
Location: Keepin' It Weird in Portland, OR | Does this mean that my 35 year-old 1121 is worth more?
No really, I hope that Fender still has some musicians on their board!
Cuz the suits would close New Hartford! Why pay American Luthiers so much! Some dude in the Philippines will work for a week on what they make an hour!
This is scary (no Halloween pun intended) And $117 million doesn't sound like that much.
Then CEO's got that in their retirement fund. |
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Posts: 14127
Location: 6 String Ranch | It's way too early to tell about any of this stuff.
The only thing for sure is that they won't tell unverifiable statements and only then when they absolutly have to.
I would not have been suprised to have seen Yamaha. At least it's not,....well you know who. |
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Location: Upper Left USA | ...that which must not be played... |
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Posts: 3111
Location: Nashville TN. | Originally posted by moody, p.i.:
I wouldn't be surprised if Kaman had been sending out feelers for several years regarding the selling of KMC. It was Charlie's passion, then Bill's. When the family finally was out of the company several years ago, the suits at Kaman probably started looking for a buyer.
I believe, that in Fender, they picked well. But how it's going to affect KMC, I don't know.... My money is on your right. |
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Location: closely held secret | And Cliff's on your left. |
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Posts: 665
Location: Tychy, Poland | tol be honest, i'd rather take yamaha than fender.
but since i'm not a owner, i can't do nothing about it.
maybe i'll look for heavily damaged Ovation guitars with bowls intact, and make guitars on my own? |
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January 2003
Posts: 146
Location: Ct./ USA | Go ahead blame labor, pay some poor guy penny's on the dollar. Why beat the American worker to death? Taxes and health own or rent we have a high standard of survival. Why? because we are the leader in the world in the development of new products that the world weans off of. Out- sourceing? Why don't they devlope there own products for pennies on the dollar. Save a buck fellow workers why we still can. I fear the worst because I have been thru the worst! |
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Posts: 15663
Location: SoCal | Maybe I'm wrong, but I don't think anybody blamed labor for this. But then I'm too busy looking out in left field, from where this last post came..... |
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Location: Campbell River, British Columbia | NO one expects the Spanish Inquisition! |
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Posts: 3111
Location: Nashville TN. | Originally posted by moody, p.i.:
Maybe I'm wrong, but I don't think anybody blamed labor for this. But then I'm too busy looking out in left field, from where this last post came..... No nobody did and qualitity control is not an issue.
We them to keep the labor force. |
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March 2007
Posts: 665
Location: Tychy, Poland | As long as dollar is weak i don't think they will move their operation to Asia, because the times when you pay 3$ a day for a labour are over. |
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Posts: 486
Location: North Carolina | Worrying about this won't affect it in any way, so why worry? It's really just a bunch of rich guys moving pieces around on a board anyway. Maybe we'll see something interesting like a lyracord Strat. |
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Posts: 3618
Location: GATLINBURG TENNESSEE :) | I'm just glad it's an American company, and not another one sold out to China.
At least they wont be changing the name to Chovation. |
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Kaman Music Sold