Fender Musical Instruments announces a change in ownership

paruwi

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Fender Musical Instruments announces a change in ownership

Longtime investors Servco Pacific Inc have acquired a majority stake in the company.
Cillian Breathnach
9 mins ago

Gary Gand 1954 Fender Stratocaster (Headstock)


Longtime investor Servco is to acquire a majority stake in Fender Musical Instruments, after entering into a sale agreement to purchase TPG Growth’s shares in the company. The purchase is set to be completed next month (February). The brand had previously operated under joint ownership from both Servco and TPG Growth.
Fender CEO Andy Mooney noted the milestones Fender had reached under the joint ownership, saying: “we thank TPG Growth for their contribution on multiple levels, both strategic and tactical, and for their support to expand into digital products and services” – referring to the introduction of Fender Digital and its projects Fender Play and Fender Songs.
Mooney also made it clear that the change in ownership won’t affect the makeup of Fender’s current management: “on an operational level, all will remain the same; Fender will continue with the same exceptional management team who all have been instrumental in our recent growth. We look forward to extending FMIC’s long term relationship with Servco who share our core mission to support artists and players at every stage in their musical journey.”

Servco’s relationship with Fender began in the 50s, when it became a dealer of its products. In 1985 it backed Bill Shultz in Fender’s buyout from CBS and, more recently, increased its stake by purchasing Weston Presidio’s shares in Fender. It was after this that it recruited TPG growth as an equal-stakes partner in ownership.
Scott Gilbertson, Partner at TPG Growth, spoke about the changes that had come about since its relationship with Fender began: “Since 2012 we’ve deployed significant resources to reinvigorate this iconic lifestyle brand. In 2015 we supported Fender’s transformation with the addition of Andy Mooney as CEO to reinforce the ongoing improvement of Fender’s business, from reenergizing channel relationships and deepening Fender’s commitment to product quality and innovation, to engaging directly with consumers, launching market-leading digital learning resources, and reaffirming Fender’s unwavering dedication to the artist community. We are grateful for Servco’s commitment to Fender and wish them continued success” Mark Fukunaga, Chairman and CEO of Servco similarly notes that the company is “proud of what Fender has accomplished.”


 

toymaker

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So more of the same basically...the plan to go public failed, so they simply bought out their equal share partner and will keep things status quo.

Probably not a bad idea - overall the company has been doing ok in a bad market. At least when they buy something - it has more to do with their "core brand" and less to do with being a "Lifestyle innovator".

Good luck to them - hopefully they can weather the storm.
 

RAG7890

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just please no giant headstocks.

hockey.jpg


:p ;)

:cheers2:
 

THDNUT

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Or, the Gumby headstock
 

Tone deaf

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So more of the same basically...the plan to go public failed, so they simply bought out their equal share partner and will keep things status quo.

Probably not a bad idea - overall the company has been doing ok in a bad market. At least when they buy something - it has more to do with their "core brand" and less to do with being a "Lifestyle innovator".

Good luck to them - hopefully they can weather the storm.
TPGG was probably getting deal fatigue. I suspect that their ideal exit horizon is around 5 years. They are around 8 years deep in this one. Servco knew their time horizon back in 2012. So, without an IPO, they needed to come up with another exit for TPGG. Servco obviously had the cash and/or leverage to buy them out. Servco probably didn't want another private equity partner to take out TPGG, because they would have wanted more upside, which could only come from Servco.
 

rogue3

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interestin. don't meddle guys.get a read of the lay of the land.look at why they are doing well.build on that.call me for advice.:beer:
 
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