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

The acquisition includes four retail locations in Texas, in San Antonio, McAllen, Laredo and Brownsville. 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 currently 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 estimated value of the transaction was not disclosed, 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.

“This transaction will enable us to strengthen our service to this important customer base., including our El Paso store which we opened last year, said Chief Executive Marty Albertson in a statement. “The conversion of these stores to the Guitar Center brand will expand our presence across the state.”