Guitar Center makes Texas acquisition.

Guitar Center Inc. announced on May 22 that that it has signed a definitive agreement to acquire certain assets of Hermes Trading Co. Inc., a Texas-based musical instruments distributor and retailer.

The acquisition includes four retail locations in Texas. As part of the transaction. Westlake-Village based Guitar Center will purchase the existing inventory of musical instruments and equipment for the four locations. The stores will be remodeled and rebranded into Guitar Center format stores. The company now has 12 Guitar Center stores in the state.

The transaction will be funded through Guitar Center's available cash and credit facility. The acquisition is subject to customary terms and conditions and may be adjusted based on the final determined inventory value. The closing is expected to occur in the second quarter. It is expected that the stores acquired in this acquisition will offset other Guitar Center store openings for 2006.