New York (April 10, 2008)--TC Group, the holding company behind Tannoy, Lab.gruppen, TC Electronic, TC-Helicon and TC Applied Technologies, and Gibson, noted guitar manufacturer, announced this morning that they will not be merging as had been declared in January at the Winter NAMM show.
Both companies issued an identical press statement, which noted that the decision followed "an intensive effort by both parties to consummate the deal within the targeted timeline, but a number of issues remained unresolved, and both Gibson and TC agreed that it was best that the merger proceedings not continue."
Under the original terms of the deal, the merger was to have been completed by the end of February, with Anders Fauerskov, chief executive officer of TC Group, becoming the chief operating officer of the new combined Gibson Guitar Corp. As part of the terms Fauerskov would have remained based in Europe.
Announcement of the merger initially caught many industry watchers by surprise, but the companies were initally exuberant about the proposed plan, with Henry Juszkiewicz, chairman and CEO of Gibson Guitar, going as far as to predict at the time, "This merger will revolutionize the music industry for many years to come."
That turned out to not be the case.