By Christiana Sciaudone
Investing.com — Herman Miller (NASDAQ:) dropped 10% after saying it will buy rival Knoll (NYSE:) for $1.8 billion. Knoll rose more than 33%.
The deal should close by the end of the third quarter.
Office furniture has, on the one hand, boomed as we built up our home offices over the past 13 months. On the other hand, traditional offices are going out of style, with Herman Miller’s sales for the third fiscal quarter tumbling 35%. But the company expects better news amid vaccinations and a return to commuting.
Herman Miller and Knoll collectively have 19 leading brands, a presence across over 100 countries worldwide, 64 showrooms and more than 50 retail locations. The combined company will have pro forma annual revenue of about $3.6 billion, and $100 million of cost synergies.
The transaction is expected to boost Herman Miller’s adjusted cash earnings per share in the first 12 months following the close of the deal.
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