Gibson Completes Baldwin Purchase

[Billbrpt@AOL.COM]

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Gibson Completes Baldwin Purchase

.c The Associated Press

  
CINCINNATI (AP) - Gibson Guitar Corp. has completed its purchase of Baldwin 
Piano & Organ Co., giving the guitar maker a prestigious brand name in the 
piano business. 

Gibson, based in Nashville, Tenn., said Wednesday that it bought Baldwin's 
assets from General Electric Capital Corp. 

GE Capital was Baldwin's biggest creditor and had the right to sell the 
company under a bankruptcy agreement reached last month. 

Financial terms were not disclosed. 

Gibson said Nov. 1 that it had signed a letter of intent to buy Baldwin's 
assets from GE Capital, the financial services arm of General Electric Co. 
Robert Jones, who was brought in as Baldwin's chief executive officer just 
before the company filed for bankruptcy May 31, has since left. 

Baldwin, based in Mason, has been in business since its 1862 founding in 
Cincinnati. The company has factories in Conway and Trumann, Ark. 

Executives who took over the company in May said it was burdened with 
excessive inventory, severance agreements and executive compensation 
commitments, and had problems with internal controls. 

Baldwin owed GE Capital nearly $31 million before filing for Chapter 11 
bankruptcy protection in order to develop a plan to put its finances in 
order. 

In October, GE Capital bid $17 million for most of Baldwin's assets. 

Gibson was founded in 1894. The company owns other popular musical brands, 
such as Epiphone, Kramer, Slingerland Drums, Oberheim Keyboards and Maestro 
effects. 

Gibson, which employs about 1,100, has annual revenues approaching $200 
million. 

On the Net: 

Gibson Guitar Corp.: http://www.gibson.com/ 

Baldwin Piano & Organ Co.: http://www.baldwinpiano.com/ 

AP-NY-11-15-01 1245EST


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