Famed piano maker Steinway is sold for $499M
John Volastro, who works in the restoration department of Steinway and Sons, applies the finishing touches to a Steinway piano at the piano maker's factory in Queens, New York in this May 17, 1996 file photo. (AP / Adam Nadel)
Published Wednesday, August 14, 2013 9:38AM EDT
WALTHAM, Mass. -- The famed piano maker Steinway is being sold for $499 million.
The company terminated an existing sales agreement with Kohlberg & Co. after it was outbid by another investment firm, Paulson & Co.
Paulson topped Kohlberg's offer by $3 per share.
Steinway, which is being taken private, will have to pay a termination fee of about $6.7 million.
Paulson will ultimately pay $40 per share for the Waltham, Mass., company. Steinway valued the sale at about $512 million.
Paulson will open a tender offer for shares of Steinway Musical Instruments Inc. within the next five days.