Famed piano maker Steinway sold for $499M

In this Oct. 31, 2011 file photo, an 1877 Steinway grand piano used by Motown artists is seen in a Motown recording studio in Detroit. AP

WALTHAM, Massachusetts  — The famed piano maker Steinway is being sold for $499 million and will be taken private.

 

The U.S.-based company terminated an existing sales agreement with Kohlberg & Co. after it was outbid by another investment firm, Paulson & Co.

 

Paulson beat Kohlberg’s offer by $3 per share.

 

Steinway will have to pay a termination fee of about $6.7 million.

 

Paulson will ultimately pay $40 per share for the company. Steinway valued the sale at about $512 million.

 

Paulson will open a tender offer for shares of Steinway Musical Instruments Inc. within the next five days.

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