109-398: The Gibson Robot Guitar (a.k.a. GOR ) is a limited-edition self-tuning Gibson guitar, typically a Les Paul . The first run of limited edition Robot Guitars was exclusively made up of Les Paul bodies. Five different Gibson models were available (2008-2011, Robot X-plorer 2008-2012)) with Robot Guitar features: The Robot Les Paul Studio , Robot SG , Robot Flying V , Robot X-plorer , and
218-469: A reverse takeover of its listed affiliate KKR Private Equity Investors in exchange for a 21% interest in the firm. In November 2008, KKR announced a delay of this transaction until 2009. Shares of KPE had declined significantly in the second half of 2008 with the onset of the credit crunch . KKR announced that it expected to close the transaction in 2009. In October 2009, KKR listed shares in KKR & Co. on
327-465: A $ 50,000 community payment. Gibson also forfeited the wood seized in the raids, which was valued at roughly the same amount as the settlement. However, in a subsequent statement Gibson maintained its innocence with Juszkiewicz claiming that "Gibson was inappropriately targeted" and that the government raids were "so outrageous and overreaching as to deserve further Congressional investigation." Juszkiewicz continued to state, "We felt compelled to settle as
436-602: A $ 638 million block of stock. While KKR no longer had any ownership of RJR Nabisco by 1995, its original investment would not be fully realized until KKR exited its last investment in 2004. After sixteen years of efforts, including contributing new equity, taking RJR public, asset sales, and exchanging shares of RJR for the ownership of Borden, Inc. , KKR finally sold the last remnants of its 1989 investment. In July 2004, KKR agreed to sell its stock in Borden Chemical to Apollo Management for $ 1.2 billion. In
545-403: A 1943 Gibson Southern Jumbo was listed for sale with an asking price of $ 18,500. In 1944, Gibson was purchased by Chicago Musical Instruments . The ES-175 was introduced in 1949. Gibson hired Ted McCarty in 1948, who became president in 1950. He led an expansion of the guitar line with new guitars such as the "Les Paul" guitar introduced in 1952, endorsed by Les Paul , a popular musician in
654-464: A 43.54% stake. In August 2019, KKR also acquired a majority stake in German payment service provider to the e-commerce industry Heidelpay from AnaCap Financial Partners for more than €600 million. In December 2019, KKR, together with Alberta Investment Management Corporation , acquired a 65% stake in the controversial Coastal GasLink Pipeline project from TC Energy . The pipeline route crosses
763-499: A Canadian income trust . In 2004 a consortium comprising KKR, Bain Capital and real estate development company Vornado Realty Trust announced the $ 6.6 billion acquisition of Toys "R" Us , the toy retailer. A month earlier, Cerberus Capital Management made a $ 5.5 billion offer for both the toy and baby supplies businesses. The Toys "R" Us buyout was one of the largest in several years. Following this transaction, by
872-516: A German wood dealer—who obtained it from a supplier in Madagascar—as well as plans to obtain the wood. It filed a civil proceeding in June 2011, the first such case under the amended Lacey Act , which requires importing companies to purchase legally harvested wood and follow the environmental laws of the producing countries regardless of corruption or lack of enforcement. Gibson argued in a statement
981-406: A Robot Les Paul Junior . Developed by Chris Adams, its most notable feature is that it uses an onboard computer to automatically tune itself. This is not the first guitar to be able to tune itself, but it is regarded as the most modern, unique, and non-invasive self-tuning model available, because it does not employ cams or cantilevers throughout the body of the guitar. The tuning system used on
1090-513: A cease and desist letter to Kiesel concerning two models that Kiesel makes—the ultra V and the 'California Singlecut.' According to Jeff Kiesel, Vice President of Kiesel, the letter claims that Kiesel's design infringes upon the Flying V design of Gibson. German manufacturer Warwick was sued by Gibson with the claim that one of the models sold under the 'Framus' brand imitated the Flying V and that customers were being misled due to this. Gibson sought
1199-428: A digital connection to "satisfy the unique requirements of live audio performances". This system requires a special pickup , and cabling is provided by a standard Cat-5 Ethernet cable . The Gibson "self-tuning guitar", also known as a "robot model", an option on some newer Les Paul, SG, Flying V and Explorer instruments, tunes itself in about two seconds using robotics technology developed by Tronical GmbH. Under
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#17327829756241308-462: A group of divisions that it could sell to reduce debt. Over the coming years, RJR would pursue a number of additional restructurings, equity injections, and public offerings of stock to provide the company with added financial flexibility. KKR contributed $ 1.7 billion of new equity into RJR in July 1990 to complete a restructuring of the company's balance sheet. KKR's equity contribution as part of
1417-551: A group of investors led by private equity firm Kohlberg Kravis Roberts (KKR). Gibson sells guitars under a variety of brand names and builds one of the world's best-known guitars, the Gibson Les Paul . Gibson was at the forefront of innovation in acoustic guitars, especially in the big band era of the 1930s; the Gibson Super 400 was widely imitated. In 1952, Gibson introduced its first solid-body electric guitar,
1526-422: A leading producer of food and tobacco products, formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company . In October of that year, Johnson proposed a $ 17 billion ($ 75 per share) management buyout of the company with the financial backing of investment bank Shearson Lehman Hutton and its parent company, American Express . Several days later, Kravis, who had originally suggested
1635-510: A line of electric and acoustic guitars endorsed by the former president. Gibson claims the guitars infringe on their trademarks, including their classic Les Paul. Gibson also owns and makes instruments under brands such as Epiphone , Kramer , Maestro , Steinberger , and Tobias , along with the ownership of historical brands such as Kalamazoo , Dobro , Valley Arts , and Baldwin (including Chickering , Hamilton, and Wurlitzer ). It also owned Slingerland Drum Company but it
1744-399: A new $ 17.6 billion fund, the KKR 2006 Fund, with which the firm began executing a series of some of the largest buyouts in history. KKR's $ 44 billion takeover of Texas-based power utility TXU in 2007 proved to be the largest leveraged buyout of the mid-2000s buyout boom and the largest buyout completed to date. Among the most notable companies acquired by KKR in 2006 and 2007 were
1853-616: A number of highly successful investments, the $ 27 million investment in Cobblers ended in bankruptcy. By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts, which led to the formation of Kohlberg Kravis Roberts & Co. Most notably, Bear Stearns executive Cy Lewis had rejected repeated proposals to form a dedicated investment fund within Bear Stearns. The name had been planned to be Kohlberg Roberts Kravis, but public relations advisors preferred
1962-499: A platform to buy media properties, initially completing the $ 310 million divisional buyout of the book club division of Macmillan along with the assets of Intertec Publishing Corporation in May 1989. During the early 1990s, K-III continued acquiring publishing assets, including a $ 650 million acquisition from News Corporation in 1991. K-III went public, however instead of cashing out, KKR continued to make new investments in
2071-459: A single investment in 1990, the first such year since 1982. KKR began to focus primarily on its existing portfolio companies acquired during the buyout boom of the late 1980s. Six of KKR's portfolio companies completed IPOs in 1991, including RJR Nabisco and Duracell . As the new decade began, KKR began restructuring RJR. In January 1990, it completed the sale of RJR's Del Monte Foods to a group led by Merrill Lynch . KKR had originally identified
2180-623: A smaller location and plans to sell the Memphis property. Gibson opened its Memphis facility 18 years before, which occupies just a portion of a massive 127,620 square foot complex. According to the Memphis Daily News , Gibson plans to search for a new facility for its Memphis operations and will stay in the current spot for the next 18 to 24 months. The facility, which sits across from the FedExForum along South B.B. King Boulevard,
2289-698: A stop on the sales of these guitars and also stated that "Warwick was unfairly exploiting the reputation of Gibson Guitars." The Hamburg regional court initially ruled in favour of Gibson in 2017. However, successive judgements from the Higher Regional Court and the Federal Supreme Court in November 2020 and September 2021 dismissed Gibson's lawsuits. Gibson sued Dean Guitars in 2019 over trademark infringement related to several guitar shapes and names. The ruling in 2022 found that
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#17327829756242398-579: Is expected to list for $ 17 million. Since its opening, the Gibson Memphis shop mostly focused on building hollow and semi-hollowbody guitars, such as the famed ES series. Presumably, this shuffling of assets was meant to address Gibson's well-publicized financial troubles. Gibson issued a press release about the move, with former CEO Henry Juszkiewicz stating: In December 2017, the Gibson Guitar Factory building in downtown Memphis
2507-524: Is headquartered at 30 Hudson Yards , Manhattan, New York, with offices in Beijing , Dubai , Dublin , Houston, Hong Kong , London , Luxembourg , Madrid , Menlo Park , Mumbai , Paris , Riyadh , San Francisco , São Paulo , Seoul , Singapore , Shanghai , Sydney and Tokyo . In a 2016 interview with Bloomberg, founder Henry Kravis described KKR in terms of three broad buckets: private markets, public markets, and capital markets. While running
2616-427: Is run by a small servo motor that works in sync with the bridge to bring the string up to pitch by altering the string's tension until it is within a desired tolerance. The entire system is powered by a nickel metal hydride rechargeable battery pack housed in the control cavity of the guitar. The Robot Guitar appears to have the standard four knobs for individual pickup volume and tone controls; however, in place of
2725-454: Is set to make an investment into Indian digital company Jio Platforms . It was reported that KKR was negotiating to buy a $ 1.5bn stake of a maximum value reach of $ 65bn for Jio Platforms. In late June 2020, KKR announced it would lead a $ 48 million funding round for Artlist, a provider of royalty-free music , sound effects and video. Despite the COVID-19 pandemic , the company reported
2834-532: The Dean V , Dean Z , and Dean Gran Sport body shapes, as well as the Dovetail headstock design and the "Hummingbird" and "Moderne" names were infringing on Gibson's designs. The judgement awarded Gibson $ 4,000 in damages, far short of the $ 7 million alleged by Gibson. In November 2024, Gibson sent a cease-and-desist letter to Alabama-based 16 Creative, the marketers of Trump Guitars, which had recently announced
2943-612: The ES-335 T model. Similar in size to the hollow-body Thinlines, the ES-335 family had a solid center, giving the string tone a longer sustain. In the 1950s, Gibson also produced the Tune-o-matic bridge system and its version of the humbucking pickup, the PAF ("Patent Applied For"), first released in 1957 and still sought after for its sound. In 1958, Gibson produced two new designs:
3052-709: The Euronext exchange, replacing KPE, and anticipated a listing on the New York Stock Exchange in 2010. The public entity represented a 30% interest in Kohlberg Kravis Roberts. In December 2011, Samson Investment Company was acquired by a group of private equity investors led by KKR for approximately $ 7.2 billion and Samson Resources Corporation was formed. With the severe downturn in oil and natural gas prices, in September 2015,
3161-617: The Gibson SG . On December 21, 2010, Gibson was granted a request for an injunction against WowWee and retailers in the United States which were selling Paper Jamz guitars: Walmart , Amazon , Big Lots stores, Kmart Corporation, Target Corporation , Toys "R" Us , Walgreens , Brookstone , Best Buy , eBay , Toywiz.com, and Home Shopping Network (HSN) The case was dismissed with prejudice (dismissed permanently) January 11, 2011 by Federal Judge R. Gary Klausner. Gibson sent
3270-658: The Les Paul , which became its most popular guitar to date—designed by a team led by Ted McCarty . In addition to guitars, Gibson offers consumer electronics through the Gibson Pro Audio division, which includes KRK . On May 1, 2018, the company filed for Chapter 11 bankruptcy protection, and announced a restructuring plan to return to profitability by closing down unprofitable consumer electronics divisions such as Gibson Innovations. The company exited Chapter 11 bankruptcy in November 2018. In January 2020,
3379-645: The Obama administration , as Juszkiewicz had frequently donated to Republican politicians. Chris Martin IV, the CEO of Gibson competitor C.F. Martin & Co. , had donated over $ 35,000 to the Democratic National Committee and Democratic candidates in the same time period. Though Martin featured several guitars in its catalog made with the same Indian wood as Gibson, but with correct documentation filed,
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3488-527: The Oregon State Treasury's public pension fund invested in KKR's acquisition of retailer Fred Meyer, Inc. Oregon State remains an active investor in KKR funds. In 1979 KKR completed a risky, precedent-setting ($ 380 million) public-to-private leveraged buyout of a large conglomerate Houdaille Industries , a well-known producer of machine tools, industrial pipes, chrome-plated car bumpers and torsional viscous dampers, which they signed
3597-835: The Seven Network of Australia. On January 23, 2007, KKR announced it would invest $ 700 million through a PIPE investment in Sun Microsystems . In January 2008, KKR announced it had made a $ 1.25 billion PIPE investment in Legg Mason through a convertible preferred stock offering. In addition to its successful buyout transactions, KKR was involved in the failed buyout of Harman International Industries ( NYSE : HAR ) , an upscale audio equipment maker. On April 26, 2007, Harman announced it had entered an agreement to be acquired by KKR and Goldman Sachs . In September 2007, KKR and Goldman backed out of
3706-666: The United States Court of Appeals for the Sixth Circuit reversed the lower court's decision and ordered the dismissal of Gibson's suit against PRS. Gibson's factories were raided in 2009 and 2011 by agents of the United States Fish and Wildlife Service (FWS). In November 2009, authorities found illegally imported ebony wood from Madagascar . A second raid was conducted in August 2011, during which
3815-523: The credit rating of RJR's debt from junk to investment grade . KKR began to reduce its ownership in RJR in 1994, when its stock in RJR was used as part of the consideration for its leveraged buyout of Borden, Inc. , a producer of food and beverage products, consumer products, and industrial products. The following year, in 1995, KKR would divest itself of its final stake in RJR Nabisco when Borden sold
3924-518: The $ 8 billion buyout of Harman. By the end of the day, Harman's shares had plummeted by more than 24% upon the news. In 2007, KKR filed with the Securities and Exchange Commission to raise $ 1.25 billion by selling an ownership interest in its management company. The filing came less than two weeks after the initial public offering of rival private equity firm Blackstone Group . KKR had previously listed its KPE vehicle in 2006, but for
4033-731: The 1950s. The guitar was offered in Custom, Standard, Special, and Junior models. In the mid-1950s, the Thinline series was produced, which included a line of thinner guitars like the Byrdland . The first Byrdlands were slim, custom built, L-5 models for guitarists Billy Byrd and Hank Garland . Later, a shorter neck was added. Other models such as the ES-350T and the ES-225T were introduced as less costly alternatives. In 1958, Gibson introduced
4142-450: The 1990s would be one of its least successful. In January 1998, KKR and Hicks, Muse, Tate & Furst agreed to the $ 1.5 billion buyouts of Regal Entertainment Group . KKR and Hicks Muse had initially intended to combine Regal with Act III Cinemas , which KKR had acquired in 1997 for $ 706 million and United Artists Theaters , which Hicks Muse had agreed to acquire for $ 840 million in November 1997. Shortly after agreeing to
4251-482: The 2007 buyout of TXU , which is currently the largest buyout completed to date. In October 2009, KKR listed shares in the company through KKR & Co., an affiliate that holds 30% of the firm's ownership equity , with the remainder held by the firm's partners. In March 2010, KKR filed to list its shares on the New York Stock Exchange (NYSE), with trading commencing four months later, on July 15, 2010. The firm employed 4,490 employees as of December 31, 2023. KKR
4360-479: The Australian hospitality industry with a portfolio of 200+ venues. In mid-July 2018, KKR purchased RBMedia , one of the largest independent publishers and distributors of audiobooks . On July 22, 2018, KKR & Co. announced it was taking over Taipei-based LCY Chemical Corp. in a deal valued at NT$ 47.8 billion ($ 1.56 billion US), part of a plan for more transactions involving controlling stakes in
4469-798: The Bozeman facility is dedicated to acoustic instruments. Gibson purchased Garrison Guitars in 2007. In mid-2009, Gibson reduced its work force to adjust for a decline in guitar industry sales in the United States. In 2011, Gibson acquired the Stanton Group, including Cerwin Vega , KRK Systems and Stanton DJ . Gibson then formed a new division, Gibson Pro Audio, which will deliver professional grade audio items, including headphones, loudspeakers and DJ equipment. In June 2020, Cerwin Vega Inc. acquired Cerwin Vega from Gibson. On May 21, 2021, Stanton
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4578-710: The Company went into Chapter 11 bankruptcy and during its bankruptcy process, sold several large assets. In 2012, KKR made its first retail real-estate investment in Yorktown Center in Illinois. In March 2013, KKR exited its joint venture in music company BMG Rights Management , selling its 51% stake to Bertelsmann . In January 2014, KKR acquired Sedgwick Claims Management Services Inc for $ 2.4 billion from two private equity companies - Stone Point, and Hellman & Friedman . In June 2014, KKR announced it
4687-805: The Epiphone brand name. They are less expensive than those bearing the Gibson name. A former competitor, Epiphone , was purchased by Gibson in 1957 and now makes competitively-priced Gibson-styled models, such as the Les Paul and SG, sold under the Epiphone brand, while continuing to make Epiphone-specific models like the Sheraton, Sorrento, and Casino. In Japan, Orville by Gibson once made Gibson designs sold in that country. Gibson has sought legal action against those that make and sell guitars Gibson believes are too similar to their own. In 1977, Gibson introduced
4796-567: The FWS seized wood imports from India that had been mislabeled on the US Customs declaration. Gibson Guitar Corp. filed a motion in January 2011 to recover seized materials and overturn the charges, which was denied by the court. The United States Department of Justice found emails from 2008 and 2009 in which Gibson employees discussed the "gray market" nature of the ebony wood available from
4905-461: The Forstmann consortium came apart and did not provide a final bid for RJR. In November 1988, RJR set guidelines for a final bid submission at the end of the month. The management and Shearson group submitted a final bid of $ 112, a figure they felt certain would enable them to outflank any response by Kravis and KKR. KKR's final bid of $ 109, while a lower dollar figure, was ultimately accepted by
5014-653: The Gibson Robot Guitar is based on the aftermarket Powertune system, which was developed by the Tronical Company of Germany. The Gibson system uses the standard Tune-o-matic style bridge typical on their guitars, but modifications were made to have individual piezo saddles that transmit each string's pitch to the microprocessor . The computer analyzes the signal, and then controls each of the Powerhead Locking Tuners. Each tuner
5123-728: The Greater China region. In July 2018, it was announced that KKR sold Gallagher Shopping Park, West Midlands in the UK to South Korean investors, Hana for £175 million. In February 2019, KKR acquired Brightsprings, and in a May 2022 letter from four United States Senators, Joe Bae and Scott Nutall were asked to explain the substandard care since their acquisition. KKR acquired the German media company Tele München Gruppe . Later that month, KKR acquired German film distributor Universum Film GmbH. In Apri 2019, KKR acquired German film production company Wiedemann & Berg Film Production with
5232-606: The MCK knob, and strumming the strings lightly. While Gibson advertised the guitar in America as a "world first," similar systems developed by Transperformance have been in use for decades. Jimmy Page currently uses a Les Paul Goldtop with the Transperformance system in it. This system is also endorsed by Graham Nash as well as Ed Roland . The drawback to the Transperformance system is that it requires heavy modification to
5341-463: The Regal takeover, the deal with United Artists fell apart, destroying the strategy to eliminate costs by building a larger combined company. Two years later, in 2000, Regal encountered significant financial issues and was forced to file for bankruptcy protection; the company passed to billionaire investor Philip Anschutz . At the start of the 21st century, the landscape of large leveraged buyout firms
5450-542: The Super 400 … still considered the best of their kind … the flattop line and the SJ-200 [that] put Gibson in a class by itself [and] Gibson's prominent place in the electric guitar market." During the global economic depression of the 1930s Hart "kept the company in business and kept the paychecks coming for the workers," in part by introducing a line of high-quality wooden toys. "And as the country began its economic recovery in
5559-716: The US Federal Deposit Insurance Corporation . In January 1996, KKR would exchange its investment for a 7.5% interest in Fleet Bank . KKR completed the 1992 buyout of American Re Corporation from Aetna as well as a 47% interest in TW Corporation , later known as The Flagstar Companies and owner of Denny's in 1992. Among the other notable investments KKR completed in the early 1990s included World Color Press (1993–95), RELTEC Corporation (1995) and Bruno's (1995). By
SECTION 50
#17327829756245668-493: The bankruptcy. Additionally, $ 135 million was provided by existing creditors to provide liquidity to maintain existing operations. Later that year Juszkiewicz stepped down as CEO and assumed the role of consultant , and a new management team was put in place. The company exited Chapter 11 bankruptcy in November 2018. In July 2021, Gibson announced the launch of Gibson Records, a record label focused on releasing "guitar-centric music, across genres", with its first album being
5777-442: The board of directors of RJR Nabisco. KKR's offer was guaranteed, whereas the management offer lacked a "reset", meaning that the final share price might have been lower than their stated $ 112 per share. Additionally, many in RJR's board of directors had grown concerned at recent disclosures of Ross Johnson's unprecedented golden parachute deal. Time magazine featured Johnson on the cover of their December 1988 issue along with
5886-665: The body design of the Les Paul was changed due to the demand for a double-cutaway body design. The new body design then became known as the SG (for "solid guitar"), due to disapproval from Les Paul himself. The original Les Paul design returned to the Gibson catalog in 1968. Gibson's production mix in the 1960s had to respond to a changing buyer's market. In 1969, Gibson executive Julius Bellson noted that "Four years ago, electric guitars account for almost 70 per cent of our guitar sales. Today their sales are below 50 percent." On December 22, 1969, Gibson parent company Chicago Musical Instruments
5995-704: The bridge pickup tone knob, there is the Master Control Knob (MCK). The control functions like a “push-pull” knob: when in the down position, it functions like a standard control. When in the up position, however, the MCK is what coordinates the automatic tuning for the guitar by sending the information and power to the neck PCB through the strings. Then the PCB activates the robot tuners by contact. Users can choose from seven factory presets for tunings, six of which are editable. Each tuning can be returned to "standard" tuning of A (440 Hz) by simply pulling up on
6104-491: The buyout. KKR collected a $ 75 million fee in the RJR takeover. At $ 31.1 billion of а transaction value (including assumed debt), RJR Nabisco was, at the time, by far the largest leveraged buyout in history. The buyout of RJR Nabisco was completed in April 1989 and KKR would spend the early 1990s repaying the RJR's enormous debt load through a series of asset sales and restructuring transactions. KKR did not complete
6213-403: The company filed for Chapter 11 bankruptcy protection. As part of its debt restructuring, the company closed and liquidated the unprofitable Gibson Innovations division, which was focused on selling audio equipment outside of the U.S., allowing Gibson to focus on its most profitable ventures, such as musical instruments. The production of Gibson and Epiphone branded guitars was not interrupted by
6322-584: The company in 1902 as the Gibson Mandolin-Guitar Mfg. Co. Ltd. in Kalamazoo, Michigan , to make mandolin -family instruments. Gibson invented archtop guitars by constructing the same type of carved, arched tops used on violins . By the 1930s, the company was also making flattop acoustic guitars, as well as one of the first commercially available hollow-body electric guitars , used and popularized by Charlie Christian . In 1944, Gibson
6431-451: The company in 1998, 2000 and 2001 to support acquisition activity. In 2005, Primedia redeemed KKR's preferred stock in the company but KKR was estimated to have lost hundreds of millions of dollars on its common stock holdings as the price of the company's stock collapsed. In 1991, KKR partnered with Fleet/Norstar Financial Group in the 1991 acquisition of the Bank of New England , from
6540-539: The company launched Gibson TV, an online television network focused on guitars and music culture. Orville Gibson patented a single-piece mandolin design in 1898 that was more durable than other mandolins and could be manufactured in volume. Orville Gibson began to sell his instruments in 1894 out of a one-room workshop in Kalamazoo, Michigan. In 1902, the Gibson Mandolin-Guitar Mfg. Co. Ltd.
6649-584: The company used seven (six since 1999) serial number systems, making it difficult to identify guitars by their serial number alone. The Gibson website provides a book to help with serial number deciphering. In 2006, Gibson introduced a nine-digit serial number system replacing the eight-digit system used since 1977, but the sixth digit now represents a batch number. In 2003, Gibson debuted its Ethernet -based audio protocol, MaGIC , which it developed in partnership with 3Com , Advanced Micro Devices , and Xilinx . Replacing traditional analog hook-ups with
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#17327829756246758-726: The company was not subjected to a raid. Gibson filed a lawsuit November 18, 2010, in Federal court, the Central District of California, against WowWee USA and its Paper Jamz battery-operated guitar toys, charging trademark infringement. The lawsuit claimed the Paper Jamz toy guitars copied the looks of some of Gibson's famous guitars, the Gibson Les Paul , the Gibson Flying V , the Gibson Explorer , and
6867-472: The corporate finance department for Bear Stearns in the 1960s and 1970s, Jerome Kohlberg , and later Henry Kravis and George Roberts , completed a series of what they described as "bootstrap" investments. They targeted family-owned businesses, many of which had been founded in the years following World War II , that were facing succession issues. Many of these companies lacked a viable exit for their founders because they were too small to be taken public and
6976-400: The costs of proving our case at trial would have cost millions of dollars and taken a very long time to resolve." Gibson reclaimed some wood stock that was confiscated during the raids, and produced a new series of guitar marketed to draw attention to the raids and seizures. In the midst of the controversy, commentators stated that the raid was a politically motivated act of retaliation by
7085-484: The early 1990s, the absence of an active high yield market prompted KKR to change its tactics, avoiding large leveraged buyouts in favor of industry consolidations through what was described as leveraged buildups or rollups . One of KKR's largest investments in the 1990s was the leveraged buildup of Primedia in partnership with former executives of Macmillan Publishing , which KKR had failed to acquire in 1988. KKR created Primedia's predecessor, K-III Communications ,
7194-443: The eccentrically shaped Explorer and Flying V . These "modernistic" guitars did not sell well initially. It was only in the late 70s when the two guitars were reintroduced to the market that they sold well. The Firebird , in the early 60s, was a reprise of the modernistic idea, though less extreme. In the late 1950s, McCarty knew that Gibson was seen as a traditional company and began an effort to create more modern guitars. In 1961
7303-536: The end of 2004 and in 2005, major buyouts were once again becoming common and market observers were stunned by the leverage levels and financing terms obtained by financial sponsors in their buyouts. In 2005, KKR was one of seven private equity firms involved in the buyout of SunGard in a transaction valued at $ 11.3 billion. KKR's partners in the acquisition were Silver Lake Partners , Bain Capital , Goldman Sachs Capital Partners , Blackstone Group , Providence Equity Partners , and TPG Capital . This represented
7412-458: The firm invested $ 90 million in lighting and electrics firm Savant Systems . Also in 2014, KKR acquired commercial landscaping company ValleyCrest from Michael Dell 's investment firm MSD Capital , and combined it with landscape company Brickman, which it had owned since 2013, to form BrightView. In January 2015, KKR confirmed its purchase of the British rail ticket website thetrainline.com , previously owned by Exponent. The purchase sum
7521-428: The firm was responsible for the 1988 leveraged buyout of RJR Nabisco . RJR Nabisco was the largest buyout in history at that time, at $ 25 billion, and remained the largest buyout for the next 17 years. The deal was chronicled in Barbarians at the Gate: The Fall of RJR Nabisco , and later made into a television movie starring James Garner . In 1988, F. Ross Johnson was the president and CEO of RJR Nabisco ,
7630-516: The firm's use of hostile tactics in the buyout of RJR. KKR proposed to provide a joint offer with Johnson and Shearson Lehman but was rebuffed and Johnson attempted to stonewall KKR's access to financial information from RJR. Rival private equity firm Forstmann Little & Co. was invited into the process by Shearson Lehman but attempted to provide a bid for RJR with a consortium of Goldman Sachs Capital Partners , Procter & Gamble , Ralston Purina and Castle & Cooke . Ultimately,
7739-426: The first time, KKR would offer investors an ownership interest in the management company itself. The onset of the credit crunch and the shutdown of the IPO market dampened the prospects of obtaining a valuation attractive to KKR. The flotation was repeatedly postponed and called off by the end of August. The following year, in July 2008, KKR announced a new plan to list its shares. The plan called for KKR to complete
7848-519: The flagship L-5 archtop guitar and the Gibson F-5 mandolin that was introduced in 1922, before leaving the company in 1924. In 1936, Gibson introduced its first "Electric Spanish" model, the ES-150 , followed by other electric instruments like steel guitars , banjos and mandolins . Following Loar, Guy Hart was the next major figure to influence the company. Musician-writer Walter Carter called
7957-487: The following day that authorities were "bullying Gibson without filing charges" and denied any wrongdoing. Arguing against the federal regulations and claiming that the move threatened jobs, Republicans and Tea Party members spoke out against the raids and supported Juszkiewicz. The case was settled on August 6, 2012, with Gibson admitting to violating the Lacey Act and agreeing to pay a fine of $ 300,000 in addition to
8066-470: The following month, it acquired PharMerica for $ 1.4 billion including debt, Pepper Group for $ 518 million, Covenant Surgical Partners, and Envision Healthcare Corporation's ambulance business ( American Medical Response, Inc. (AMR) ) for $ 2.4 billion. On July 6, 2017, KKR announced it would merge Northern California Mi Pueblo and Ontario-based Cardenas Market. On September 18, 2017, Toys "R" Us, Inc. filed for Chapter 11 bankruptcy , stating
8175-487: The following: Other non-buyout investments completed by KKR during this period included Legg Mason , Sun Microsystems , Tarkett, Longview Power Plant , and Seven Network . In October 2006, KKR acquired a 50% stake in Tarkett, a France-based distributor of flooring products, in a deal valued at about €1.4 billion ($ 1.8 billion). On November 20, 2006, KKR announced it would form a A$ 4 billion partnership with
8284-665: The founders were reluctant to sell out to competitors. In 1964, Lewis Cullman acquired and then sold Orkin Exterminating Company in what some call the first significant leveraged buyout transaction. In the following years the three Bear Stearns bankers completed a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973), as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. Despite
8393-511: The fourth studio album from Slash feat. Myles Kennedy & The Conspirators , 4 . In 1977, Gibson sued Hoshino Gakki / Elger Guitars for copying the "archtop" headstock. The lawsuit was settled out of court, and Ibanez replaced the headstock with a revised design. In 2000, Gibson sued Fernandes Guitars in a Tokyo court for allegedly copying Gibson designs. Gibson did not prevail. Gibson also sued PRS Guitars in 2005, to stop them from making their Singlecut model. Initially successful,
8502-420: The headline, "A Game of Greed: This man could pocket $ 100 million from the largest corporate takeover in history. Has the buyout craze gone too far?". KKR's offer was welcomed by the board, and, to some observers, it appeared that their elevation of the reset issue as a deal-breaker in KKR's favor was little more than an excuse to reject Johnson's higher bid of $ 112 per share. Johnson received $ 53 million from
8611-581: The idea of the buyout to Johnson, presented a new bid for $ 20.3 billion ($ 90 per share) financed with an aggressive debt package. KKR had the support of equity co-investments from pension funds and other institutional investors , including Coca-Cola , Georgia-Pacific and United Technologies corporate pension funds, as well as endowments from MIT , Harvard and the New York State Common Retirement Fund . However, KKR faced criticism from existing investors over
8720-495: The instrument, including routing and installing multiple cams and cantilevers. Gibson Guitar Corporation Gibson, Inc. (formerly Gibson Guitar Corporation and Gibson Brands Inc. ) is an American manufacturer of guitars , other musical instruments , and professional audio equipment from Kalamazoo, Michigan , and now based in Nashville, Tennessee . Orville Gibson started making instruments in 1894 and founded
8829-591: The largest leveraged buyout completed since the takeover of RJR Nabisco in 1988. SunGard was the largest buyout of a technology company until the Blackstone -led buyout of Freescale Semiconductor . The SunGard transaction was notable given the number of firms involved in the transaction, the largest club deal completed to that point. The involvement of seven firms in the consortium was criticized by investors in private equity who considered cross-holdings among firms to be generally unattractive. In 2006, KKR raised
8938-463: The latter company's television arm W&B Television remained a separate entity. Two months later in July 2019, KKR acquired the Canadian software company Corel . In August 2019, KKR acquired Arnott's , the Australian snack unit of Campbell Soup Company , for $ 2.2 billion. Later that month, KKR became the biggest shareholder of German media group Axel Springer , paying $ 3.2 billion for
9047-412: The library and publishing industry; the acquisition was finalized in June 2020. In May 2020, KKR announced that it will be investing $ 750 million in cosmetics producer Coty . A separate plan was revealed in which several divisions of Coty are set to be spun out into a new company. According to the deal, KKR will own 60%, while Coty 40% of the new business. The same month, it was announced that KKR
9156-435: The mid 1930s, he ... opened new markets overseas." Then in the 1940s he led the company though World War II by converting the factory to wartime production, winning an Army-Navy "E" award for excellence. After the war he returned the factory to instruments before he retired. During World War II , instrument manufacturing at Gibson slowed due to shortages of wood and metal, and Gibson began manufacturing wood and metal parts for
9265-463: The mid-1990s, the debt markets were improving and KKR had moved on from the RJR Nabisco buyout. In 1996, KKR was able to complete the bulk of fundraising for what was then a record $ 6 billion private equity fund, the KKR 1996 Fund. However, KKR was still burdened by the performance of the RJR investment and repeated obituaries in the media. KKR was required by its investors to reduce the fees it charged and to calculate its carried interest based on
9374-421: The military. Between 1942 and 1945, Gibson employed women to manufacture guitars. "Women produced nearly 25,000 guitars during World War II yet Gibson denied ever building instruments over this period", according to a 2013 history of the company. This denial was contradicted by historical statements. Gibson folklore has also claimed its guitars were made by "seasoned craftsmen" who were "too old for war". In 2023,
9483-513: The move would give it flexibility to deal with $ 5 billion in long-term debt, borrow $ 2 billion so it would be able to pay suppliers for the upcoming holiday season and invest in improving current operations. During 2017, KKR purchased an 80 percent stake in Dixon Hospitality Group for A$ 190 million in 2017 which turned into the company Australian Venue Co. (AVC). AVC is a food and beverage-focused operator in
9592-476: The next two decades "The Guy Hart Era" and spelled it out in his definitive history of the company:. "Guy Hart ran Gibson from 1924-1948 -- the most important period in the company history since the debut of Gibson instruments at the turn of the century and, moreover, the period of greatest innovation for the guitar since the emergence of the six-string guitar in the late 1700s. As the guitar rose to prominence, so did Gibson. Under Hart's management, Gibson developed
9701-465: The original leveraged buyout of RJR had been only $ 1.5 billion. In mid-December 1990, RJR announced an exchange offer that would swap debt in RJR for a new public stock in the company, effectively an unusual means of taking RJR public again and simultaneously reducing debt on the company. RJR issued additional stock to the public in March 1991 to reduce debt further, resulting in an upgrade of
9810-423: The previous year. It soon ended in a spectacular failure, breakup of the half-a-century-old company and loss of thousands of jobs, even though creditors earned a profit. The firm's acquisitions during the 1980s buyout boom include: At age 61, Kohlberg resigned in 1987 (he later founded his own private equity firm, Kohlberg & Co. ), and Henry Kravis succeeded him as senior partner. Under Kravis and Roberts,
9919-403: The serial numbering system in use until 2006. An eight-digit number on the back shows the date when the instrument was produced, where it was produced, and its order of production that day (e.g., first instrument stamped that day, second, etc.). An exception is the year 1994, Gibson's centennial year; many 1994 serial numbers start with "94", followed by a six-digit production number . As of 2006,
10028-553: The sound of KKR. The new KKR completed its first buyout, of manufacturer A.J. Industries, in 1976. KKR raised capital from a small group of investors including the Hillman Company and First Chicago Bank . By 1978, with the revision of the ERISA regulations, the nascent KKR was successful in raising its first institutional fund with over $ 30 million of investor commitments. In 1981, KKR expanded its investor base after
10137-500: The territory of the Wet'suwet'en Nation , which opposes the project. Enforcement of an injunction to build through the Wet'suwet'en territory has sparked widespread protests across Canada . In the final days of 2019, KKR announced it would acquire OverDrive, Inc. , a major distributor of eBooks to libraries. The potential for consolidation with KKR subsidiary RBMedia was quickly noted in
10246-599: The total profit of the fund (i.e., offsetting losses from failed deals against the profits from successful deals). KKR's activity level would accelerate over the second half of the 1990s making a series of notable investments including Spalding Holdings Corporation and Evenflo (1996), Newsquest (1996), KinderCare Learning Centers (1997), Amphenol Corporation (1997), Randalls Food Markets (1997), The Boyds Collection (1998), MedCath Corporation (1998), Willis Group Holdings (1998), Smiths Group (1999), and Wincor Nixdorf (1999). KKR's largest investment of
10355-557: The tradename Min-ETune, this device became standard on several models in 2014. Kohlberg Kravis Roberts KKR & Co. Inc. , also known as Kohlberg Kravis Roberts & Co. , is an American global investment company . As of December 31, 2023 , the firm had completed private equity investments in portfolio companies with approximately $ 710 billion of total enterprise value. Its assets under management (AUM) and fee paying assets under management (FPAUM) were $ 553 billion and $ 446 billion, respectively. KKR
10464-459: Was bought by Chicago Musical Instruments (CMI), which was acquired in 1969 by Panama-based conglomerate Ecuadorian Company Limited (ECL), that changed its name in the same year to Norlin Corporation. Gibson was owned by Norlin Corporation from 1969 to 1986. In 1986, the company was acquired by a group led by Henry Juszkiewicz and David H. Berryman. In November 2018, the company was acquired by
10573-495: Was bought by Henry E. Juszkiewicz, David H. Berryman, and Gary A. Zebrowski in January 1986. Gibson's wholesale shipments in 1993 were an estimated $ 70 million, up from $ 50 million in 1992. When Juszkiewicz and Berryman took over in 1986, sales were below $ 10 million. New production plants were opened in Memphis, Tennessee , as well as Bozeman, Montana . The Memphis facility is used for semi-hollow and custom shop instruments, while
10682-585: Was changing. Several large and storied firms, including Hicks Muse Tate & Furst and Forstmann Little & Company were dragged down by heavy losses in the bursting of the telecom bubble . Although KKR's track record since RJR Nabisco was mixed, losses on such investments as Regal Entertainment Group , Spalding , Flagstar and RentPath (previously K-III Communications) were offset by successes in Willis Group, Wise Foods, Inc. , Wincor Nixdorf and MTU Aero Engines , among others. Additionally, KKR
10791-418: Was founded in 1976 by Jerome Kohlberg Jr. , and cousins Henry Kravis and George R. Roberts , all of whom had previously worked together at Bear Stearns , where they completed some of the earliest leveraged buyout transactions. Since its founding, KKR has completed a number of transactions, including the 1989 leveraged buyout of RJR Nabisco , which was the largest buyout in history to that point, as well as
10900-463: Was incorporated to market the instruments. Initially, the company produced only Orville Gibson's original designs. The company moved into the Gibson, Inc. Factory and Office Building in 1917. Orville died in 1918 of endocarditis (inflammation of the inside lining of the heart chambers and valves). The following year, the company hired designer Lloyd Loar to create newer instruments. Loar designed
11009-644: Was not disclosed. On October 12, 2015, KKR announced that it had entered into definitive agreement with Allianz Capital Partners to acquire their majority stake in Selecta Group, a European vending services operator. In 2016, KKR purchased two Hispanic grocery chains, Northern California Mi Pueblo and Ontario, California –based Cardenas. In February 2016, KKR invested $ 75 million in commercial real estate lender A10 Capital. On September 1, 2016, KKR announced that it had acquired Epicor Software Corporation , an American software company. In October 2016, it
11118-555: Was one of the few firms that were able to complete large leveraged buyout transactions in the years immediately following the collapse of the Internet bubble, including Shoppers Drug Mart and Bell Canada Yellow Pages . KKR was able to realize its investment in Shoppers Drug Mart through a 2002 IPO and subsequent public stock offerings. The directories business would be taken public in 2004 as Yellow Pages Income Fund ,
11227-614: Was reported that KKR invested $ 250 million in OVH to be used for further international expansion. This funding round valued OVH at over $ 1 billion, making it a unicorn . In December 2016, the Lonza Group announced it would acquire Capsugel for $ 5.5 billion from Kohlberg Kravis Roberts. In February 2017, KKR was reported to be trying to take over the international market research company ARI GfK SE . In July 2017, KKR acquired WebMD Health Corp for $ 2.8 billion and,
11336-427: Was shifted from Kalamazoo to Nashville, Tennessee . The Kalamazoo plant kept going for a few years as a custom-instrument shop, but was closed in 1984; several Gibson employees led by plant manager Jim Duerloo, plant superintendent Marv Lamb and J.P. Moats established Heritage Guitars in the old factory, building versions of classic Gibson designs. The company was within three months of going out of business before it
11445-624: Was sold to Drum Workshop in November 2019. Gibson relaunched Kramer Guitars at Winter NAMM 2020 on January 16. Icon, Baretta, Pacer, Focus, and SM-1 are in the original collection with the modern collection including Assault, Striker, Nite-V, and Bass. The artists collaborations for the relaunched Kramer Guitar includes Tracii Guns 'Gunstar Voyager,' the Charlie Parra 'Vanguard' and the Dave Sabo 'Snake-Baret. Gibson has long made authorized copies of its most successful guitar designs, under
11554-612: Was sold to Somera Road, an investment company in New York. Two years later Gibson closed the Memphis factory and moved hollow-body production to Nashville. It also moved its Nashville headquarters to Cummins Station in 2019. Gibson also started shipping Murphy Lab guitars through its Murphy Lab Division of the Gibson Custom Shop in March 2021. The opening of this division was announced in December 2019. On May 1, 2018,
11663-709: Was sold to inMusic. Gibson announced a partnership with the Japanese-based Onkyo Corporation in 2012. Onkyo, known for audio equipment and home theater systems, became part of the Gibson Pro-Audio division. In 2013, Gibson acquired a majority stake in TEAC Corporation . In 2014, Gibson acquired the Woox consumer electronics brand from Royal Philips. In October 2017, Gibson announced plans to relocate its Memphis operations to
11772-660: Was taken over by the South American brewing conglomerate ECL. Gibson remained under the control of CMI until 1974 when it became a subsidiary of Norlin Musical Instruments. Norlin Musical Instruments was a member of Norlin Industries which was named for ECL president Nor ton Stevens and CMI president Arnold Ber lin . This began an era characterized by corporate mismanagement and decreasing product quality. Between 1976 and 1984, production of Gibson guitars
11881-722: Was taking a one-third stake in Spanish energy business Acciona Energy , at a cost of €417 million ($ 567 million). The international renewable energy generation business operates renewable assets, largely wind farms , across 14 countries including the United States , Italy and South Africa . In August 2014, KKR announced it was investing $ 400 million to acquire Fujian Sunner Development, China's largest chicken farmer, which breeds, processes and supplies frozen and fresh chickens to consumers and corporate clients, such as KFC and McDonald's, across China. In September 2014,
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