HNI to acquire Kimball

In a major M&A deal in the workplace furnishings sector, HON brand owner HNI is to acquire fellow supplier Kimball International.

The two vendors have entered into a definitive agreement under which HNI will acquire all the outstanding shares of Kimball International in a cash and stock transaction valued at approximately $485 million. Including debt, the deal gives Kimball an enterprise value of $531 million.

The total implied share consideration HNI is paying is $12.90, a considerable premium on Kimball’s average price in the run-up to the deal. Following the acquisition – which is expected to close in mid-2023 – HNI shareholders will own about 90% of the combined company, and Kimball shareholders the other 10%.

HNI CEO Jeff Lorenger will head the enlarged entity. Kimball CEO Kristie Juster will remain in her current role until the transaction is finalised.

The combined pro forma annual revenue of the businesses is $3.1 billion, with 66% (about $2 billion) from the workplace furnishings segment. This includes the healthcare vertical, where Kimball’s strong market presence will be complementary.

new purchase orders until the week commencing 27 March. Neither the supplier portal nor the digital content platform Salsify were functional, and the customer care phone network was still down.

While Essendant did refer to a “security incident” in a customer communication dated 7 March, it did not publicly admit it had been the victim of a cyberattack until ten days later. This was shortly after specialist publication Bleeping Computer reported that ransomware operator LockBit had claimed responsibility for hacking into the wholesaler’s network.

An image posted by Bleeping Computer appeared to suggest LockBit would release confidential data after 18 March, but – as far as OPI is aware – this has not been the case. Following the outage, Essendant stated: “At this time, we do not believe that sensitive information has been compromised.” However, it did not confirm this in subsequent updates on its website.

As this issue of OPI went to press, Essendant’s recovery efforts were still ongoing. We hope to bring you a detailed analysis in the June edition. In the meantime, please check opi. net for news of further developments.

Outlining the rationale for the deal, HNI pointed to Kimball’s strengths in secondary and tertiary geographies in the US and its expertise in ancillary furnishings. Both these factors, it said, would position it well for new working trends.

The transaction solidifies HNI’s place as the fourth-largest global office furniture manufacturer, after Steelcase, MillerKnoll and Haworth.