Guitar Center Acquires Maryland Retailer

Guitar Center Inc. has reached an agreement to acquire Music & Arts Center, a Maryland-based retailer of musical instruments with about 60 locations. Under the agreement, which requires various approvals, the Westlake Village-based company will pay about $90 million for the company and assume about $8 million in debt. Music & Arts Center targets beginning musicians with rental programs, music lessons and band and orchestra instrument sales. It also operates seven educational support centers. “Beginning with our acquisition of American Music, we have worked toward an objective of expanding our presence into the educational or beginning musician segment of our industry,” said Guitar Center Chairman and CEO Marty Albertson in a release announcing the deal. Guitar Center will integrate its American Music division with Music & Arts Center this year under the Music & Arts center name. The company’s shares rose $1.67 in early trading today on the news. William Blair & Co. LLC acted as financial advisor to Guitar Center for the acquisition.