If at first you don’t succeed, try, try again: Guitar Center certainly took that adage to heart in its efforts to acquire South Bend, IN-based The Woodwind & the Brasswind. In late January, though, its purchase of the multititle mailer was approved — and for less money than it had offered two months earlier.
The U.S. Bankruptcy Court in South Bend approved Westlake Village, CA-based Guitar Center’s acquisition of Woodwind & the Brasswind for $29.9 million — $7.2 million less than its November offer of $37.1 million. The sale was expected to close by mid-February.
Woodwind & the Brasswind is the nation’s third-largest musical instrument merchant, recording 2005 sales of about $136 million. Its titles include Music 123 Drum Catalog, Inspirational Pro Audio Visual, and Gifts of Note. The $2.03 billion Guitar Center owns Medford, OR-based mailer Musician’s Friend.
On Nov. 22, Guitar Center had agreed to buy substantially all the assets of Woodwind & the Brasswind. But on Dec. 20 it announced that the agreement had been terminated after the bankruptcy court approved instrument maker Steinway Musical as the lead bidder in a stalking-horse auction. Steinway offered $40.5 million for Woodwind & the Brasswind but withdrew the offer on Jan. 15, saying that its due diligence uncovered certain closing conditions that wouldn’t be met if it acquired the company.