Ludwig's parent company sold

DrumEatDrum

Platinum Member
Ludwig drums are, as many know, owned by Conn-Selmer.

Conn-Selmer is actually a division of Steinway Musical Instruments.

And now:

http://dealbook.nytimes.com/2013/07/01/steinway-sold-to-private-equity-firm-for-438-million/?_r=0

Steinway Sold to Private Equity Firm for $438 Million

Steinway Musical Instruments announced on Monday that it had agreed to be acquired by the private equity firm Kohlberg & Company in a deal worth roughly $438 million.

The offer of $35 a share represents a 33 percent premium over Steinway’s average closing price in the 90 trading days that ended June 28. Compared with the average closing price during the 52 weeks that ended June 28, the offer represents a premium of 45 percent, the company said
I doubt this will effect Ludwig itself very much, if at all for now.

But what the future may hold, who knows.
 

bermuda

Drummerworld Pro Drummer - Administrator
Staff member
In some ways, this frees up Ludwig to things that were more restrictive under Steinway. Definitely a good thing in terms of what Ludwig will be able to do in the future.

Bermuda
 

GruntersDad

Administrator - Mayor
Staff member
Here's hoping they leave Ludwig alone. No one loves their drums more than Luddy fans. Let's hope it's all for the best.
 

bobdadruma

Platinum Member
In a situation like this you never know what will happen.
You just have to wait and see.
Ludwig may be sold off in the near future.
Who knows what is on Kohlberg's mind.
 

tamadrm

Platinum Member
It's difficult to know what will happen,but Ludwigs brand recognition and history will certainly play into it's future .Ludwigs recent sucess with their USA made drums,new hardware line and list of celebrity endorcers will also factor in.

Like Bermuda says,this could be good thing for Ludwig ;winner,winner chicken dinner for "the most famous name on drums".

Steve B
 

Bo Eder

Platinum Member
Like Bermuda says,this could be good thing for Ludwig ;winner,winner chicken dinner for "the most famous name on drums".

Steve B
Mapex?


......................................................................... ;)
 

DrumEatDrum

Platinum Member
Don't these PE firms then break up the company and sell off the pieces?
Sometimes, not always. I wouldn't guess either way in this case.

Although it wouldn't surprise me if someone at Gibson has a phone call in to see if a spin off would be part of the plan.

In some ways, this frees up Ludwig to things that were more restrictive under Steinway. Definitely a good thing in terms of what Ludwig will be able to do in the future.

Bermuda
Oh, now I'm curious!! What was restrictive about Steinway?
 

Red Menace

Platinum Member
This could mean changes for Luddy. They have been working very hard to improve their QC process and refresh their image. I hope they continue on that path. If not then I'm hoping for another Drumcraft esque fire sale.
 

bobdadruma

Platinum Member
Whatever happens I am sure that an Icon like Ludwig will prevail.
Ludwig survived the 70's when Rogers and Slingerland lay on their death beads.
They currently have problems like all musical instrument companies do in this poor economy.
They have innovative and desirable products that we drummers like and I'm sure that the new owner knows that.
 

Bo Eder

Platinum Member
This could mean changes for Luddy. They have been working very hard to improve their QC process and refresh their image. I hope they continue on that path. If not then I'm hoping for another Drumcraft esque fire sale.
I'd like to think Ludwig is on much better financial footing in its own home country. Personally I think they have too many people who recognize and love the product for that to even be a consideration. They, along with Gretsch to a smaller degree, did survive the Japanese onslaught that killed names like Camco, Rogers, and Slingerland, although it probably wasn't a pretty survival, they did nonetheless ;)
 

bobdadruma

Platinum Member
Kohlberg & Company started as a hostile takeover corporate raider of large companies but they have mellowed a bit over the years and they now take over smaller companies. Either way I am sure that Ludwig will be split up and sold off.
Without knowing the financial status of Ludwig it is hard to say exactly what will happen.
I can't see Ludwig as being a financial asset though.
The prize that Kohlberg wanted was definitely Steinway.
Ludwig is just a knick knack that was in the house that they bought.
The snare drum division is the profit center for Ludwig.
The other divisions may be sold off.
 
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Bo Eder

Platinum Member
Kohlberg & Company started as a hostile takeover corporate raider of large companies but they have mellowed a bit over the years and they now take over smaller companies. Either way I am sure that Ludwig will be split up and sold off.
Without knowing the financial status of Ludwig it is hard to say exactly what will happen.
I can't see Ludwig as being a financial asset though.
The prize that Kohlberg wanted was definitely Steinway.
Ludwig is just a knick knack that was in the house that they bought.
The snare drum division is the profit center for Ludwig.
The other divisions may be sold off.
Sounds kinda' dark there, Bob. We'll just have to wait and see what happens. Be brave, little toasters ;)
 

bobdadruma

Platinum Member
Sounds kinda' dark there, Bob. We'll just have to wait and see what happens. Be brave, little toasters ;)
Wall St can be a dark place Bo. The people who bought Steinway don't care about musical instruments. They only care about profit.
 

Bo Eder

Platinum Member
Wall St can be a dark place Bo. The people who bought Steinway don't care about musical instruments. They only care about profit.
That's pretty true for most businesses, including Ludwig. Given the longevity of the company as it is, I'm sure it will remain in one form or another. Thankfully, there's so many old used ones floating about (that you and I both own) I think it's safe to say at this time that if we just maintained the Ludwigs we already have, they'd be the last ones we ever played ;)
 

SgtThump

Platinum Member
Quick, buy up all the "pre-Kohlberg & Company" Ludwigs you can get your hands on! They'll be worth millions!

;)
 

DrumEatDrum

Platinum Member
Wall St can be a dark place Bo. The people who bought Steinway don't care about musical instruments. They only care about profit.
True, but keep in mind, Steinway was a publicly traded company. Ludwig has been tied to Wall Street for some time.

Ludwig was sold to Selmer in 1981. Selmer bought Steinway in 1995, and re-branded itself as Steinway Musical Instruments.

Ludwig has a long history of being bought and sold going back to 1930's.
 
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