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Kimball is picking up Poppin
Posted on Thursday, 05 November 2020 11:14
Kimball International has agreed to acquire Poppin, a technology-enabled, market-leading business-to-business commercial furniture design company, for up to USD 180.00 million.
The Nasdaq-listed acquiror is offering USD 110.00 million in initial cash consideration, as well as an additional USD 70.00 million based on revenue and profitability milestones achieved through 30th June 2024 if all milestones are achieved.
New York-based Poppin designs commercial-grade furniture that is made to mix, match and scale in modern office spaces and work-from-home environments.
The company has combined its digitally native platform with a 17-person sales force and network of five showrooms to rapidly become one of the industry’s leading disruptors primarily serving small to medium businesses.
Poppin achieved a 40.0 per cent annual compound growth rate in revenue between 2014 and 2019; however, the impact of Covid-19 has caused revenue to decline in 2020.
In the nine months ended 30th September 2020, the group posted sales of USD 44.00 million and achieved a gross margin of 36.0 per cent.
Poppin has a history of aggressive investment in channel development resulting in negative earnings before interest, taxes, depreciation and amortisation of USD 5.00 million during the same timeframe.
Kristie Juster chief executive of Kimball, said: “The addition of Poppin to the Kimball International family provides us with a meaningful growth engine that aligns with our recently-launched 2.0 Connect Strategy and with our longer term vision to create a leading omnichannel commercial furnishings design powerhouse supported by a robust manufacturing and sourcing infrastructure.
“The acquisition greatly accelerates the development of our eBusiness platform, and we have identified multiple levers to drive significant revenue synergies.”
Completion is scheduled during the quarter ending 31st December 2020, subject to the usual raft of closing conditions.
Kimball International has created furnishings that have helped customers shape spaces into places, bringing possibility to life by enabling collaboration, discovery, wellness and relaxation.
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