Harman Agrees to $7.8 Billion Buyout
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.