Guitar Center to Acquire American Music Group

Mar 21, 2001 10:30 PM  By

Agoura Hills, CA–In a move that strengthens its position in the band instrument market, retailer Guitar Center, which owns cataloger Musician’s Friend, signed an agreement to acquire $30 million New York-based musical instrument cataloger/retailer American Music Group (AMG). Guitar Center will acquire the assets of American Music Group and related companies for $16.9 million, of which about $14.4 million will be paid in cash. Approximately $2.5 million will be paid in new shares of Guitar Center stock. The deal is expected to close in April.

AMG includes the Lyons Music and Giardinelli Band Instrument Co. catalogs, 12 stores, and a music accessory distributor. The company sells to teachers, band directors, college professors, and students. AMG will operate as a division of Guitar Center’s retail business and will remain a stand-alone business serving the band-instruments market. David Fleming, president/chief operating officer of AMG, will remain with the company and report directly to Larry Thomas, chairman/co-CEO of Guitar Center. Guitar Center stores will not carry band instruments.