Fender Musical Instruments Corporation (FMIC) today announced Servco Pacific Inc. (Servco) and TPG Growth have entered into a sale and purchase agreement in which Servco will acquire TPG’s shares in the company. The acquisition is targeted to close in February 2020, subject to certain closing conditions.
“Fender has enjoyed 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,” said Andy Mooney, Chief Executive Officer of Fender Musical Instruments Corp. “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. We look forward to extending FMIC’s long term relationship with Servco who share our core mission to support artists and players at every stage in their musical journey.”
“We are extremely proud of the work we’ve done with Fender’s management team to strengthen and solidify Fender’s status as a leader and innovator in the world of music,” said Scott Gilbertson, Partner at TPG Growth. “Since 2012 we’ve deployed significant resources to reinvigorate this iconic lifestyle brand. In 2015 we supported Fender’s transformation with the addition of Andy Mooney as CEO to reinforce the ongoing improvement of Fender’s business, from reenergizing channel relationships and deepening Fender’s commitment to product quality and innovation, to engaging directly with consumers, launching market-leading digital learning resources, and reaffirming Fender’s unwavering dedication to the artist community. We are grateful for Servco’s commitment to Fender and wish them continued success.”
“Servco is proud of what Fender has accomplished,” added Mark Fukunaga, Chairman and CEO of Servco.
Servco has been involved in the musical instruments industry since 1937, and its relationship with Fender began as a dealer of its products in the 1950’s. 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. Through this acquisition, Servco sought to optimize the potential of this iconic music brand and selected TPG Growth as an equal partner in this journey. Fukunaga added “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.”