Macquarie Group Ltd and General Electric Capital Corp. are providing financing to support Kohlberg & Co.’s $438 million acquisition of Steinway Musical Instruments Inc., owner of the 160-year-old piano maker.
The private equity firm will contribute a portion of cash to back the transaction, the company said today in a regulatory filing. There’s a termination fee of as much as $13.35 million.
Steinway agreed to be taken private following 17 years as a publicly traded company. Under terms of the agreement, a Kohlberg affiliate will tender for all of the company’s outstanding shares, according to a statement yesterday.
The deal includes a 45-day period in which Waltham, Massachusetts-based Steinway can solicit other proposals.