Servco secures majority share in Fender through TPG

Hawaii privately held company Servco PACIFIC has acquired TPG Growth’s stake in Fender Musical Instruments Corporation (FMIC).

Hawaii privately held company Servco PACIFIC has acquired TPG Growth’s stake in Fender Musical Instruments Corporation (FMIC).

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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Financial details of the transaction have not been disclosed.

The acquisition will bring no operational changes as Fender’s management team will continue to run the company.

Los Angeles-based Fender is a manufacturer, marketer and distributor of musical instruments.

Under the sale and purchase agreement, Servco will secure a majority stake in the guitar maker after a 34-year partnership.

The transaction is subject to mandatory closing conditions and is expected to be completed by February 2020.

The association of the two companies dates backs to the 1950s when Servco served as a dealer of Fender’s products.

Servco also invested in the company when Bill Schultz acquired the company from CBS in 1985.

Servco chairman and CEO Mark Fukunaga said: “Servco is proud of what Fender has accomplished.

“Servco has a 100-year track record that includes stewarding iconic brands through committed, long-term partnerships that span multiple generations. We look forward to deepening our relationship with Andy and the Fender team that will prove beneficial to our community of artists around the world.”

Fender has undergone modernisation over the last few years, with the introduction of an e-commerce platform, the upgrade of channelled product innovation, and the enhancement of its manufacturing abilities.

The company also ventured into digital business by developing its Fender Play and Fender Songs apps.

The Competition and Markets Authority (CMA), the UK market regulator, recently fined Fender Europe over resale price maintenance (RPM).

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.