Harman International Industries will be acquired by Kohlberg Kravis Roberts and GS Capital Partners.
The deal is valued at $8 billion and was unanimously approved by the Harman board. KKR had approached Harman and it structured the transaction so that Harman stockholders “have the opportunity to participate in the future upside potential of the enterprise.”
The company will continue to be named Harman International Industries and founder Sidney Harman stays on as executive chairman. Harman owns about 5% of Harman stock. He started the company five decades ago.
Harman makes audio products and electronic systems; brands include Harman Kardon, JBL, Mark Levinson and Infinity, among others.
The Washington Post looked this week at how the deal came about and what it means for the company.
Harman stockholders can get $120 in cash for each share of Harman common stock; or they can choose to exchange shares of Harman stock for shares in the new corporation incorporated by KKR and GSCP in order to acquire Harman.