ZEELAND, Mi. - Herman Miller - number 5 on the FDMC 300 and the second-biggest contract furniture operation in North America - has acquired the remaining shares of contemporary British furniture designer naughtone for $46.1 million.
This is the company's second big European acquisition this month - paying $78 million for an additional 34 percent equity interest in Denmark's HAY A/S, a European leader in ancillary furniture.
Herman Miller partnered with naughtone in 2016 by acquiring a 50 percent stake in the company, helping enhance its global offering in ancillary and collaborative furnishings - an area in which the company says it sees significant growth potential. As a result, naughtone generated average annual sales growth of 35 percent each year since. Herman Miller was able to expand its product design and development capabilities, fueling 11 new product launches and earning it numerous design and innovation awards.
"naughtone has been a vital strategic partner in growing Herman Miller Group's ancillary product offering," said Andi Owen, Herman Miller President and CEO. "I'm so proud of our shared values, as well the modern aesthetic and contemporary British design they bring to our family of brands."
Based in Harrogate, North Yorkshire, naughtone was founded in 2005 and has grown rapidly in the collaborative furniture market. Known for contemporary design and high-quality manufacturing, particularly in upholstery, naughtone's innovative products such as the Always chair range, the Polly chair, and the Viv chair are used by clients around the world, says Herman Miller.
"Our partnership with Herman Miller has helped us significantly grow our global market presence, especially in North America," said naughtone Vice President of Sales Matt Welsh. "This expanded relationship sets us up for continued success, and we look forward to working together in this new capacity to achieve great results."
Herman Miller expects to consolidate naughtone's operating results following the closing date of this transaction. Net sales for naughtone's most recent fiscal year that ended in May 2019 totaled approximately $37 million. Excluding potential one-time purchase accounting adjustments, this transaction is expected to have an incremental $0.01 to $0.03 accretive impact on earnings per share in the remaining seven months of fiscal 2020.
About Herman Miller:
Main Location: Zeeland, MI; Divisions: Nemschoff, Geiger, Maharam, ELA International; Annual Sales: $2.381 billion ('18); Manufacturing Plants: 10 -- Atlanta, GA; Holland, Spring Lake, Zeeland, MI; Hildebran, NC; Sheboygan, WI; Melksham, England; Dongguan, Ningbo, China; Bangalore, India; Sao Paulo, Brazil; Total Square Footage: 4 million; Products: Contract/office furniture and related services, and residential furniture -- desks, office systems, office chairs, healthcare systems, manufacturing and laboratory systems, home office, occasional furniture, education furniture; Total Employees: 7,600
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