Hedge fund billionaire, John A. Paulson is planning to acquire the maker of Steinway & Sons pianos in order to expand his presence in the market.

Paulson & Company has agreed to acquire the company that makes the pianos, Steinway Musical Instruments, in a deal valued at $512 million. The move comes as a surprise to some on Wall Street as it is new industry for the hedge fund giant that made billions the housing market and specialises on mortgages, gold and other financial assets.

Paulson & Company has been acquiring stakes in several firms but has never acquired the entire firm ever. Mr. Paulson said the decision to acquire the firm is mainly due to his love for pianos. He already owns three Steinway & Sons pianos; the medium model M grand, the larger model O and the nearly seven-foot-long model B.

Mr. Paulson said, "I've always been enamored with the product. You have Mercedes in cars, and top brands in every other area. But no one has such a high share of the high end."

Michael T. Sweeney, Steinway's chairman and chief executive said that it is good for the company that he has an insight into the product that would allow him to develop the product.