The bid topped a $438-million offer in July from Kohlberg & Co, the New York private-equity outfit.
Paulson has agreed to acquire Steinway for $40 per share -- its ticker symbol is "LVB" for Ludwig van Beethoven -- in a move that will take the company private. The announcement comes at a time of sluggish and waning sales for Steinway in the U.S., but strong demand in Asia.
Steinway said in a release Wednesday that Kohlberg didn't match the terms of the Paulson offer.
The sale is the latest business twist for Steinway, whose
Steinway & Sons was founded in 1853 in New York by Henry Engelhard Steinway and his sons. The company became the world's premier maker of baby and concert grand pianos, with a reputation for hand-crafted instruments and unparalleled quality. The company has been sold a few times, most recently in 1995 to the Selmer Co., a maker of musical instruments, for a reported $100 million.
The new deal comes just a few months after Steinway sold its opulent New York showroom near
Steinway, which is headquartered in Massachusetts, is the preferred brand of pianists
Paulson & Co. is headed by