Guitar Center Sold

[elcid]

Guitar Center and its affiliates were sold for 2.1B to Bain, a private investment group.

[ScottB]

~Scott

[jb4674]

So, is there going to be a clearance in the works or are they going to remain in business?

Jimmy

[OLIE_ROCKS_THE_80'S]

More than likely they will stay in business! hopefully they will make it what it used to be in the late 80'S and early 90'S!!!

[bluealien]

Wow, Under the agreement, the buyers will also assume about $200 million in debt.

[jemaholic]

I need to see this - where can I find the info please...

[jemaholic]

June 27 (Reuters) - Guitar Center Inc. (GTRC.O: Quote, Profile, Research) said it agreed to be acquired by affiliates of private investment firm Bain Capital Partners LLC for about $2.1 billion, including assumed debt. Under the terms, Guitar Center stockholders will receive $63 in cash for each share held, the company said in a statement.

The offer represents a 26 percent premium over Guitar Center's closing price on Tuesday.

(Reporting by Debojyoti Ghosh in Bangalore)

((Editing by Anil D'Silva; Reuters Messaging:debojyoti.ghosh.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800)) Keywords: GUITERCENTRE TAKEOVER/BAIN
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This will change the landscape radically.

[elcid]

http://news.morningstar.com/news/Vie...gid=qtqnPress1


http://www.bloomberg.com/apps/news?p...CKw&refer=home

[waylay00]

So what does this mean for GC's future?

[Gusfmm]

Originally Posted by bluealien

Wow, Under the agreement, the buyers will also assume about $200 million in debt.

You think that's a lot? How much do you think is the cost of their inventory and carrying cost of it? They're a mere retailer, 10% of their worth in inventory turnover debt is not much at all.

Interesting to see somebody else is interested in investing in music retail. New owners I'm sure should have plans to continue growing business. Otherwise they'd have not paid a 25% premium.

I'd actually heard from MF.com people themselves that they'd acquired Music 1_2_3 .com recently. I have not been able to find anything online to that respect to confirm this though.

Gus.

[elcid]

Here you go Gus
From the top link I posted


We are also the largest direct response retailer of musical instruments in the United States through our wholly owned subsidiary, Musician’s Friend, Inc., and its catalogs and websites, including www.***************.com, www.guitarcenter.com, www.wwbw.com and www.********.com. More information on Guitar Center can be found by visiting the Company’s web site at www.guitarcenter.com

[elcid]

the **** means Mf, and M123 you can read them in the above link

[Gusfmm]

Oh, there you go Cid, I'd just skimmed through the whole thing and did not noticed the reference to m123.

Thanks!

[C.Thep]

Originally Posted by OLIE_ROCKS_THE_80'S

More than likely they will stay in business! hopefully they will make it what it used to be in the late 80'S and early 90'S!!!

what were they like in the 80's?

[OLIE_ROCKS_THE_80'S]

Originally Posted by C.Thep

what were they like in the 80's?

A place where you actually go and get decent and knowledgeable assisstance from the sales people and a great selection of guitars and amps!!!
you could drool and feel like a kid in a candy store because of all the cool stuff they used to have! I haven't felt like that for a long long time and I have been to dozens of music stores!!! (I always wanted to go to the Eastcoast music mall though, I used to have a poster! probably that is one of the last cool guitar stores still standing, if it still "exists" that is)