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Posts: 10581
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
P{lease note I have no clue what this means for Ovation. I find it interesting that it happenes on my Birthday. |
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Posts: 1138
Location: CT | AAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHH!!!!!!!!!!! :eek: |
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Posts: 325
Location: Texas | Well, I don't know what all of that means either for Ovation - I hope that doesn't mean all ovation/Adamas guitars will be make overseas now. Better buy those USA ovations now, just in case. :rolleyes: |
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Posts: 1792
Location: Rego Park, NY, | I hope this won't affect our annual trip to the Mothership.
On a happier note Happy Birthday Al!! |
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October 2007
Posts: 18
Location: Minneapolis, Minnesota | Glad I got in when I did....
How's this for irony... I traded my 1980 FENDER 75 Tube amp for my new 2006 12 string Legend LX just this weekend! Karma!!! |
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Posts: 1817
Location: Minden, Nebraska | Happy Birthday, Al! May the best be yet come.
Now I'm the proud owner of pre-Fender Ovations! |
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Posts: 14842
Location: NJ | HappyBirthday, Al!! |
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Posts: 1388
Location: Paris/France | I don't know what to think about this news. :rolleyes:
We will have soon Mexican O's...
And Joyeux Anniversaire Al !!!! ;)
J :) |
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December 2001
Posts: 10581
Location: NJ | the most intelligent thing I can think of to say at this point is:
the one constant is that there will always be change. |
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Posts: 4903
Location: Phoenix AZ | Maybe we have our next gathering in Scottsdale AZ !!! |
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Posts: 15654
Location: SoCal | Interesting news. It's way way too early to speculate as to what this means. The people at Fender are pretty smart. They took a company, that 25 years ago was worth almost nothing except the name and have built a huge empire. Don't they also own Guild? Anybody know what else they own? Gretch?
Hey, at least Kaman Music wasn't bought by Gibson!
Happy Birthday Al, you old fart, you..... |
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January 2005
Posts: 640
Location: boulder | cheers Al!!!!
if you can't make 'em, buy 'em!!!!!
I agree with Vision btw :rolleyes:
Actually the vxt I played through a fender acoustic sonic (name???) amp w/ built in effects sounded really sweet.
can't see this affecting the mothership to much to quickly...the money making gits are already built overseas, maybe the ct factory will head more in the Hamer direction-less guitars made, higher quality for each. Odd man out would seem to be the benz amps...
the pre fender ovations, man those were the good days... |
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Posts: 1126
Location: Omaha, NE | I have to think this is good for Ovation. Big time good.
Who would you rather have own you (if you are a guitar factory): An publicly traded, integrated aerospace/industrial manufacturing concern or a privately held music company? Seems like a no brainer to me, notwithstanding that Kaman Corp (and Kaman personally) gave birth to Ovation.
And of course when Fender looks at KMC, they look right past Ovation and see the distribution business. That's the real gem here for them.
I see some chance that Fender would like to spin off Ovation/Hamer and concentrate on the distribution side. But the more likely scenario is that they continue to build their stable of brands and work them internally.
I think this makes sense. |
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Posts: 1126
Location: Omaha, NE | Oops...posted twice... |
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Posts: 13303
Location: Latitude 39.56819, Longitude -105.080066 | as moody said...could've been Gibson. I think so far as the sale goes, we were lucky.
I assume my pre-fender ovations just went up 20% in value.
Please check the "for sale" section for my latest offerings! |
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December 2003
Posts: 13984
Location: Upper Left USA | First – Happy Birthday Al!
Second – What are the dimensions across the top on your Dreadnaught Wooden Adamas?
Thirdly – My prayers and wishes for all of the Hamer/Ovation Workers as they transition and anticipate the future. Better or worse, richer or poorer…
Fourthly and on topic – I am also a Tacoma Fan and they have made a transition over to FMIC in the last few years. Currently their Factory in Tacoma Washington is robustly working on Tacoma, Guild and other USA made instruments under the FMIC umbrella. In the Tacoma Factory case I have seen the resources to accomplish mission goals provided for and no reduction in work for the Craftspeople in the factory.
I will also state that FMIC’s customer service is at the bottom!
Not personal, not available, no direct lines and the doors are shut to the public.
As my friends at the Unofficial Tacoma fan site do, I will start to refer to my Ovations as “Pre-Fender”.
Fifthly – If it means that the Ovation/Hamer family could set up shop in Tacoma WA I would be happy to provide area information and a warm welcome! |
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Posts: 1225
Location: Lake Hiawatha, New Jersey | Happy Birthday Al!
I have always found Fender's products to be very well made. They certainly seem to know what they're doing. I just bought a Mexican made Jazz Bass and I'm very happy with it. Very good value for the money. I'm sure that, if it's profitable, they will leave Ovation alone. I hope that it works out well for everyone in CT. |
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August 2006
Posts: 3145
Location: Marlton, NJ | I have worked for a couple of companies that have been acquired and I would say that this is at best neutral for Ovation. Best case is that FMIC leaves O alone - worst case - they take what they want (distribution, technology, etc) and get rid of the redundancies. |
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March 2005
Posts: 5563
Location: Blue Ridge Mountains | Happy Birthday Al! Many happy returns!
Moody P.I. wrote: Interesting news. It's way way too early to speculate as to what this means. The people at Fender are pretty smart. They took a company, that 25 years ago was worth almost nothing except the name and have built a huge empire. Don't they also own Guild? Anybody know what else they own? Gretch?
The first thing that Fender did when they bought Guild was to move it out of the Northeast factory where they had been made for many many years and took them to the West Coast. I fear that may very well be the fate for Ovation. On one hadn a real shame; on the other, probably a good thing for Ovation in the long run...well I hope so anyway.
Mike Lewis is head of Gretch Guitar Sales (FMIC) worldwide and is a longtime friend of mine: I am going to email him to ge his take on this! |
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Posts: 4389
Location: Capital District, NY, USA Minor Outlying Islands | Like Woody said, as I'm also a fan of tacoma, it was a shot in the arm for them. I'm hoping the same thing will happen to ovation. It's my recollection, that Guild's are now being built by Tacoma, so the guild people got reduced. But their product wasn't very good, while ovations are top notch.
Since Ovations are sui generis, it'll probably be neutral for them, and they may not move. The Hamer people fill a nitch for high end set necks for Fender, so they may even expand. The question as Tuppy points out so gleefully is where will they be built. Do you consolidate? Are the factories for making set necks and bolt ons so different? Will solid body production be moved to scotsdale? What do the bean counters say? Interesting times. |
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October 2005
Posts: 4028
Location: Utah | Maybe at least the O website will be improved and kept up to date!
Will FendOvation start releasing factory distressed signature guitars, like the Clapton Blackie Strat? |
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July 2003
Posts: 1922
Location: Canton (Detroit), MI | ALRIGHT!!!! Now my five Os and my five Strats are siblings!!!!! :D
I already had Ovation and Fender stuff intermingled in my den....guess I was just "ahead of my time".....
Roger |
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July 2005
Posts: 354
Location: Flushing, MI | Originally posted by Old Applause Owner:
ALRIGHT!!!! Now my five Os and my five Strats are siblings!!!!! :D
I already had Ovation and Fender stuff intermingled in my den....guess I was just "ahead of my time".....
Roger Yeah, me too - with three O's and three Telecasters. Not to mention a couple of fine old amps.
Ya think Fender will get around to making that round, lyrachord backed resophonic guitar that I've always wanted to see? Call it a D'Ovation (for Dobro and Ovation - get it?). |
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Posts: 3111
Location: Nashville TN. | Happy Birthday
I not too about this.
Ovation as we know it may end.
I am very concernd for thier future. |
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June 2004
Posts: 580
Location: NW NJ | This whole thing makes me a little sick...
But the bright note is that it is Al's birthday - Happy Birthday Amigo! |
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Kaman sold to Fender
