ZEELAND, MI – Office and healthcare furniture giant Herman Miller, Inc. will purchase majority ownership in Stamford, CT-based lighting and accessories designer Design Within Reach, Inc. for $154 million.
Design Within Reach (DWR), which did $218 million in 2013, operates 38 retail locations across the United States and Canada, as well as online and catalogue operations. DWR is the largest retailer of Herman Miller’s furniture designs. The acquisition of DWR will provide Herman Miller Inc. with a growing product portfolio of modern designs, as well as growing Herman Miller’s own brand, officials said.
“The addition of DWR is a transformational step forward in realizing our strategy for diversified growth and establishing Herman Miller as a premier lifestyle brand,” says Brian Walker, Herman Miller CEO. “This combination expands our reach in the higher margin consumer sector and we have identified multiple points of strategic leverage that will benefit our other segments and operations, as well as DWR’s own growth plans.”
Both John Edelman, the CEO of DWR and company president John McPhee, will report to Walker. The two will convert their remaining ownership in DWR to an ownership stake in Herman Miller.
Upon completion of the acquisition, DWR shareholders should receive approximately $23 per share as a result of the purchase, said Greg Bylsma, Herman Miller CFO.
Herman Miller executives say the company will receive up to $10 million in tax benefits.
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