Longtime shareholder Honolulu-based Servco Pacific Inc. has reached a sale and purchase agreement with TPG Growth to acquire a majority stake in Los Angeles-based Fender Musical Instruments Corp.
The acquisition is targeted to close next month, subject to certain closing conditions. No purchase price was disclosed.
Fender, one of the world’s top musical instrument manufacturers, marketers and distributors, has a portfolio of brands that include Fender, Squier, Gretsch guitars, Jackson, EVH and Charvel.
Servco has been in the musical instruments industry since 1937, and its relationship with Fender began as a dealer of its products in the 1950s. In 1985, Servco was part of the small investor group that backed industry icon Bill Schultz in the buyout of Fender from CBS.
Over 25 years later Servco increased its ownership with the purchase of Weston Presidio’s stake in Fender and selected TPG Growth as an equal partner.
Fender CEO Andy Mooney said the company has had nearly a decade of sustained growth under the joint ownership of Servco and TPG Growth.
“We thank TPG Growth for their contribution on multiple levels, both strategic and tactical, and for their support to expand into digital products and services,” he said. “On an operational level, all will remain the same; Fender will continue with the same exceptional management team who all have been instrumental in our recent growth.”
Fender has achieved several brand milestones in recent years, including direct-to-consumer e-commerce, channeled product innovation, streamlining manufacturing capabilities and digital innovation with the creation of a new division and digital products including its app, Fender Play.
Servco, founded in 1919, is a diversified business with operations in automotive distribution and retail, car sharing, appliance distribution and retail, and venture and growth capital. Servco has more than $1.8 billion in annual revenue and 2,000 employees spanning Hawaii, Australia and California.
