After the retirement of Kuhrmeyer in 1955, the company was taken over by Sidney M. Katz. The product line of Kay was shifted toward electric musical instruments on demands, and in 1964, the company moved to a new factory in Elk Grove Village, Illinois. In 1965 Katz sold Kay to Seeburg Corporation, and he became the head of Seeburg's musical instrument division. In 1967, Kay was resold and merged with Valco, but dissolved in 1968 due to financial problems.
