ZEELAND – Herman Miller announced that it has entered into an agreement to acquire Design Within Reach, a Stamford, Connecticut-based marketer and seller of modern furniture, lighting and accessories, for $154 million in cash.
The Company will acquire an ownership interest in DWR equal to approximately 84 percent, subject to adjustment for net debt, changes in working capital, and other post-closing items. As a result of the transaction, the Herman Miller estimates it will receive future tax benefits with a present value of approximately $10 million.
DWR’s Chief Executive Officer (John Edelman) and President (John McPhee) will together continue to lead the business within Herman Miller and report to Brian Walker, CEO, Herman Miller. Following this transaction, these executives will convert their remaining ownership interest in DWR for an approximate 8.5 percent ownership stake within a newly formed Herman Miller consumer business unit.
DWR was founded in 1998 with a mission to make the best in modern design readily available to the public. Today the company is North America’s largest premium retailer of authored modern design, operating 38 retail Studio locations in the U.S. and Canada, an established e-commerce presence, and a popular print catalog. DWR has a diverse and well-established customer base, including consumers, architects and interior designers and small businesses. Its comprehensive channel structure, marketing acumen, and experienced management have driven both revenue growth and brand awareness, establishing the company as the premier source for modern design. Today DWR is the largest and fastest growing retailer of Herman Miller’s furniture designs.
?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, helping people create inspiring places where they work, live, heal and learn,? said Brian Walker, Herman Miller’s Chief Executive Officer. ?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.”
Greg Bylsma, Herman Miller’s Chief Financial Officer, said each of DWR’s shareholders will be entitled to receive approximately $23 per share on a fully-diluted basis as a result of the acquisition. Furthermore, an escrow account (borne solely by the largest DWR shareholders), will be established to satisfy any post-closing obligations resulting from the transaction. Shareholders will receive further information from the Company regarding the acquisition shortly after closing.
