Fender Musical Instruments Soon To IPO… Rock On (FNDR)

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Fender Musical Instruments Corporation, maker of the famed Fender guitar, is soon going to be a public company.  The maker of musical instruments filed its paperwork with the Securities and Exchange Commission for an initial public offering.  Fender will take the stock ticker “FNDR” on the NASDAQ.

While no filing terms were given, the amount to be sold in shares is “up to $200 million.” The underwriters are as follows: J.P. Morgan and William Blair & Company are the book-runners; co-managers are Baird, Stifel Nicolaus Weisel, and Wells Fargo Securities.

In 2011, Fender says it had the number-one market share by revenue in the United States in electric, acoustic and bass guitars and electric and bass guitar amplifiers.  Since its acquisition of Kaman Music Corporation in 2007, Fender claims to have been one of the largest independent distributors of musical instrument accessories in the United States.

Fender dates back to 1946.  The company’s sales grew from $612.5 million in fiscal 2009 to $700.6 million in fiscal 2011; while net income grew from $10.8 million in fiscal 2009 to $19.0 million in fiscal 2011.  Adjusted EBITDA grew from $43.7 million in fiscal 2009 to $52.9 million in fiscal 2011.

The growth of the music industry seems to rise and fall, but this name should have little to no problem selling shares in its IPO.

JON C. OGG