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Herman Miller to furnish a deal with HAY
Posted on Wednesday, 09 October 2019 13:00
Herman Miller is buying an additional 34.0 per cent stake in Denmark-based furniture company HAY for around USD 78.00 million.
Following the closing of the transaction, which is scheduled for December this year, the acquiror will own 67.0 per cent of the target, after initially acquiring a 33.0 per cent interest in June last year.
HAY’s co-founders and creative directors, Rolf and Mette Hay, will hold the remaining 33.0 per cent stake in the company.
The deal is subject to customary closing conditions.
Upon completion, Herman Miller expects to record a non-controlling interest for the remaining 33.0 per cent stake in the target.
HAY was founded in 2002 and designs and makes furniture, lighting and other accessories for the contract and residential furnishing markets.
The group claims to be the leading provider of ancillary furnishings across Europe and Asia, featuring work by Amanda Borberg, Daniel Enoksson and Hee Welling.
HAY’s products include tables, shelves and wardrobes, as well as food storage units and kitchen equipment.
For the financial year ended 31st July 2019, the target generated revenue of around USD 160.00 million.
The deal is part of Herman Miller’s strategy to roll out HAY’s brand globally, having already established the business in North America via sites in Oregon, California and Illinois.
Andi Owen, chief executive of the buyer, said: “Scaling HAY is a key component in expanding our footprint within the retail and contract markets while reaching a younger, more urban demographic that we've been targeting for expansion.”
The transaction is expected to increase Herman Miller’s earnings per share by USD 0.01 to USD 0.02 in the second half of fiscal year 2020.
For the three months ended 31st August 2019, Herman Miller posted net sales of USD 670.90 million, up 6.9 per cent from USD 624.60 million in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, 35 deals targeting upholstered household furniture manufacturers have been signed off worldwide since the beginning of 2019.
In the most valuable of these, Heliconia Capital Management bought Singapore-based Secretlab SG for SGD 300.00 million (USD 217.19 million).
© Zephus Ltd