EAST GREENVILLE, PA - Knoll Inc. has acquired home furnishings supplier Holly Hunt Enterprises Inc. and its related entities. The contract furniture giant said the $95 million acquisition advances its strategy for becoming a "go-to resource for high design workplaces and homes, including the commercial contract, decorator to-the-trade and consumer markets."
The news was announced February 3. Founded in 1983 and based in Chicago, HOLLY HUNT designs, produces and showcases custom made products including indoor and outdoor furniture, lighting, rugs, textiles and leathers. In 2013 the company posted revenues of $94.0 million and double digit operating margins.
"We estimate the global market for luxury home furnishings and coverings to exceed the market for contract furnishings and believe it offers significant opportunity for further consolidation and growth as the number of affluent, design savvy consumers expands globally," Knoll CEO Andrew Cogan said in a statement. "The acquisition of HOLLY HUNT accelerates our high design residential and consumer strategy and opens up new sources of revenue that complement our existing Office and Specialty businesses."
Holly Hunt remains as CEO of the company and a will report directly to Cogan. She will also serve as an advisor to Knoll on the company's high design residential strategy. David Schutte, Knoll's senior vice president and chief marketing officer, has been named president of HOLLY HUNT; the company said his addition enables Hunt to focus her time on design and creative strategy.
Knoll said the acquisition of HOLLY HUNT for $95.0 million in cash, plus contingent future payments dependent on the performance of the business over the next three years, is expected to be immediately accretive. Knoll said it estimates that it will receive future tax benefits with a present value of approximately $20.0 million as a result of the transaction.
Following the acquisition, approximately 40 percent of Knoll revenues will come from outside the North American office market. The financial results for HOLLY HUNT will be reported as part of the Knoll Inc. Studio segment.
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