Harman Agrees to $7.8 Billion Buyout

Discussion in 'OT Technology' started by Ronin, Apr 30, 2007.

  1. Ronin

    Ronin Guest

    I should've bought stock in them when I was considering it :(

    Harman Agrees to $7.8 Billion Buyout

    by Clint DeBoer — last modified April 26, 2007 09:31 Contributors: J. Walker Clarke, Jr.

    [​IMG] Harman International

    Harman International Industries Inc. said it agreed to be acquired by Kohlberg Kravis Roberts and the private-equity arm of Goldman Sachs Group Inc. in a deal valued at roughly $7.8 billion.

    The Washington, D.C.-based Harmon is the parent company for the popular Harman Kardon, JBL and Infinity brands which extend into the automotive, pro audio, and home theater industries.

    Under the agreement, Harman shareholders can elect to exchange their shares for $120 a share in cash, or for shares of the new company. The bid can be calculated as being 17% over the current share price as of this week ($102.56 NYSE). The terms of the deal also permit the company to solicit other proposals over the next 50 days.

    The transaction was unanimously approved by the Harman Board of Directors, following the recommendation of a Special Committee of independent directors. KKR initiated discussions with Harman and structured the transaction so that current Harman stockholders have the opportunity to participate in the future upside potential of the enterprise. The company will continue to be named Harman International Industries and Dr. Sidney Harman, Founder and Executive Chairman, will remain Executive Chairman (and currently owns 5% of the company's shares).

    Dr. Harman stated: “We are pleased to reach an agreement with KKR and GSCP that is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in Harman’s future growth. KKR and GSCP are two of the world’s leading private equity investors and our Board of Directors strongly believes that this transaction will create attractive long-term opportunities for our employees, customers and business partners. Together, we will continue to execute our strategic plan, capitalize on new opportunities, and build on our history of product innovation and service excellence.”
    For more information, please visit www.harman.com.

    Hopefully we can expect good things to come from the company and that future products will be an improvement and not a step back.
  2. twistid

    twistid Banged By Super Models Moderator

    Jul 15, 2001
    Likes Received:
    The Kansass/Oklahomo Border
    we were just talking about this at the shop this week... i believe there was an article in twice, that started the conversation.
  3. bearsdidit

    bearsdidit Active Member OT Supporter

    May 8, 2004
    Likes Received:
    Huntington Beach,CA
    i got written up in twice a few years back... lost the link to the article though... got a HUGE raise for it.

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