Fender Announces New Financial PartnersFender Musical Instruments Corporation (Scottsdale, Ariz.), manufacturer of electric guitars and amplifiers, announced the recent sale of holdings in 1/03/2002 7:00 AM Eastern
Fender Musical Instruments Corporation (Scottsdale, Ariz.),manufacturer of electric guitars and amplifiers, announced therecent sale of holdings in the company. In order to reward itsfounding shareholders of more than 16 years, Fender has recapitalized aminority portion of its common stock to allow for a partial payment tothose who helped finance the buyout of the company from CBS in1985.
New financial partners include Roland Corporation U.S., the LosAngeles-based musical instrument company with whom Fender haspreviously partnered on co-designed products, and Weston Presidio, aprivate equity firm based out of San Francisco.
Since leveraging to buy Fender Musical Instruments Corporation fromCBS in 1985, chairman and CEO Bill Schultz and his group of investorshave restored the American musical company to its former status as anindustry front runner. Over the past two years, Fender has soughtto reward its longtime investors by realizing the potential of theirinitial investments. Many of these investors will receive thecapital raised from the minority sale, while continuing to stay on asshareholders and board members of the company.
"Our shareholders have realized an appreciation in stockevaluation," explained Schultz. "Their faith and loyalty to the brandname and to our financial goals are the reason that we are back on top,and we want to reward them for the patience and the trust they haveplaced in our management team by allowing a partial redemption of theirshares."
Added Schultz, "We've also been very focused on strengthening ourfuture economic structure. The newly established relationshipwe've forged with Roland and Weston Presidio has not only financed therepurchase of common stock from our founding shareholders, it hasaligned us with progressive partners that share our vision of a globalcompany."
For more, visit www.fender.com.