rAVe just learned that Harman International agreed to an acquisition by Kohlberg Kravis Roberts & Co. L.P. and GS Capital Partners. You might remember KKR as the giant investment company that bought such huge companies as RJR Nabisco and Beatrice back in the 1980s. According to the company website, KKR, founded in 1976 has completed more than 150 transactions with an aggregate enterprise value of over $279 billion.
The Harman deal is worth roughly $8 billion and was unanimously approved by the Harman Board of Directors, following the recommendation of a Special Committee of independent directors. Under the terms of the agreement, Harman stockholders will be entitled to receive $120 in cash for each share of Harman common stock they hold. As an alternative to receiving the cash, Harman’s stockholders will be offered the opportunity to invest in the new corporation incorporated by KKR and GSCP in order to acquire Harman.
The company will continue to be named Harman International Industries and Dr. Sidney Harman, Founder and Executive Chairman, will remain Executive Chairman.
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.”