Herman Miller has agreed to buy rival furniture manufacturer Knoll for $1.8bn.
The deal will create a company with combined sales of $3.6bn and profits of about $550m.
The deal is a 45% premium on Knoll’s share price before the agreement.
‘This transaction brings together two pioneering icons of design with strong businesses, attractive portfolios and long histories of innovation,’ says Andi Owen, Herman Miller president and ceo. ‘As distributed working models become the new normal for companies, businesses are reimagining the office to foster collaboration, culture and focused work, while supporting a growing remote employee base. At the same time, consumers are making significant investments in their homes. With a broad portfolio, global footprint and advanced digital capabilities, we will be poised to meet our customers everywhere they live and work. Together, we will offer a deep portfolio of brands, technology, talent and innovation, to create meaningful growth opportunities in all areas of the combined business.’
‘This combination validates the strategic direction and our success in building a preeminent constellation of design-driven brands and leaders, and is a testament to the achievements of the entire Knoll team in bringing a contemporary perspective to how we work and live,’ says Andrew Cogan, Knoll chairman and ceo. ‘We believe this combination offers significant benefits to our shareholders, clients, dealers and associates. Our shareholders will receive immediate and certain value, as well as future upside potential through ownership in an industry leader with significant growth opportunities. Our clients, the design community and dealers will have access to an expanded, exceptional portfolio of brands through enhanced channels. And our associates will benefit as part of a larger and more diversified company with a shared design legacy.’
Once the takeover is complete – expected to be in the autumn – Cogan will leave after 30 years as Knoll with Owen becoming ceo.
