Herman Miller acquires Design Within Reach
July 18, 2014-- Home Textiles Today,
Zeeland, Mich. -- Herman Miller today 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.
Herman Miller, which designs, manufactures and sells furniture systems, will acquire an 84% ownership interest in DWR for an estimated $154 million in cash, subject to post-closing items. The transaction is subject to regulatory approval and is scheduled to close July 28.
DWR was founded in 1998 and today the company claims to be North America's largest premium retailer of authored modern design, with 38 retail Studio locations in the U.S. and Canada, an established e-commerce presence, and a print catalog. DWR is the largest and fastest growing retailer of Herman Miller's furniture designs.
DWR had revenues of approximately $218 million in 2013. Herman Miller generated approximately $1.9 billion in revenue in fiscal 2014.
DWR's ceo 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% ownership stake within a newly formed Herman Miller consumer business unit.
"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. 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, said Walker.
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