Gibson Guitar Corp., the guitar and musical instrument manufacturer, has announced an agreement to make a strategic investment in Japan’s TEAC Corporation, the parent of Tascam.
Gibson will make an all-cash tender offer to purchase 157,447,000 shares of TEAC common stock (equal to 54.4% of all issued and outstanding shares) for 31 Japanese Yen per share in cash. The tender offer period commenced on 1 April 1, 2013 and will remain open for 21 Japanese business days.
Upon completion of the acquisition, TEAC will become a member of the Gibson family, which includes KRK, Cerwin-Vega!, and Stanton brands, in addition to the premium consumer electronics of last year’s strategic partnership with Onkyo Corporation. A Tascam X-48MkII multi-channel recorder is pictured.
In a statement issued last week, Gibson said the move was “another step in Gibson’s aim to become the largest music and sound business in the world with the ability to deliver an uncompromising entertainment experience to the customer, spanning musical instruments to the most innovative recording and audio/visual devices”.
Commenting on the transaction, Henry E. Juszkiewicz, chairman and CEO of Gibson, said: “We are delighted to welcome TEAC and its talented employees to the Gibson family. We have both known each other for a long time and share a vision for the future: bringing together world-class engineering and technical innovation in the audio space with the world’s premier musical instrument manufacturer, and the capability to market music innovation on a global scale.”
“Gibson is a strong believer in ‘Cool Japan’ and together with TEAC, we look forward to not only contributing to the global understanding of the ‘Cool’ products emanating from Japan in the music area, but also promoting the excellence of Japanese innovation in the industry,” he continued.