Private equity firm Weston Presidio looks set to make about $50m as legendary guitar maker Fender heads towards its IPO.
The buyout house, which owns 43 per cent of the US’ largest guitar seller, is planning to sell 3.5 million shares in the offering, which Fender anticipates will be priced at between $13 and $15 a share.
A total of 10.7 million shares are set to be sold during the listing on Nasdaq, netting a total of $150m at the mid-point of that range.
Fender increased its sales by 13 per cent, to $700.6m, last year and plans to expand into emerging markets such as China and India.
The company, whose guitars are played by music legends including Eric Clapton and Pete Townshend, has become the main seller of electric, acoustic and bass guitars since being founded by Leo Fender in 1946.
Nearly 16 per cent of Fender’s net sales are made through Guitar Center, another Weston Presidio-held company.
The company, which had a net income of $19m last year compared to a net $1.69m loss in 2010, plans to use $100m from the offering to repay a portion of a senior credit facility.
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