Private-Equity Firms Buys Out Harman International For $7.8 Billion
Harman International has agreed to by acquired by private-equity firms Kohlberg Kravis Roberts and GS Capital for $8 billion. Under terms of the deal, Harman shareholders can either exchange their shares for $120/share in cash, or take shares in the new company after the closing of the deal, which is expected to occur in the third quarter of 2007. The per-share bid represents a 17% premium to Wednesday’s closing price of $102.56.
Harmon founder Sidney Harman, who owns 5% of the company’s shares outstanding, called the agreement 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.” Not to mention his pocketbook. –Ed.) Harman just reported third-quarter net income of $71 million, or $1.07 a share, up from $64 million, or 94 cents a share, for the year-ago period. According to a filing with the Securities and Exchange Commission, net sales for the third quarter were $882.8 million compared to $801.5 million during the same period last year, an increase of 10%.
