Private equity firm purchases Westlake Village Guitar Center

Westlake Villagebased Guitar Center announced it has accepted a $1.9 billion buyout offer from Bain Capital Partners, LLC, a private equity investment firm.

The total transaction value, including assumed debt, is approximately $2.1 billion.

Guitar Center (Nasdaq: GTRC) is the largest musical instrument retailer in the United States.

Under the terms of the merger agreement, stockholders will receive $63 in cash for each share of Guitar Center common stock they own. Shares soared 20 percent on the news and hit a 52-week high of $60.35 during trading on Wed., June 27.

The transaction, which was put together by the investment banking firm Goldman, Sachs & Co., was approved by the Guitar Center's board of directors and is expected to close in the fourth quarter of this year pending an okay by the company's stockholders.

"We believe this transaction delivers outstanding value for our stockholders and is a strong validation of the company's accomplishments over the years as well as our future growth prospects," said Marty Albertson, Guitar Center chairman and chief executive officer.

"Bain Capital has a successful track record and significant investment experience in the retail industry, and we look forward to partnering with them going forward," Albertson said.

Founded in 1959, Guitar Center now has more than 210 stores across the United States. The main product lines include guitars, amplifiers, keyboards, percussion instruments and proaudio and recording equipment. Guitar Center's Music & Arts division operates more than 95 stores specializing in band instruments for sale and rental to the education community.

The company went public in 1997.

"As the leading retailer of musical instruments in the U.S., Guitar Center enjoys great brand recognition among musicians nationwide, a loyal customer base and a track record of significant growth," said Jordan Hitch, a managing director at Bain Capital.

Bain is a global private investment firm with approximately $50 billion in assets under management.