HNI Corporation and Kimball International, Inc. announced that they 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. As a result of the transaction, Kimball International shareholders will own approximately 10% of the combined company.
A combined HNI and Kimball International will have a broader, more comprehensive product offering, tailored go-to-market strategies, and enhanced manufacturing capabilities. Kimball International’s strong presence in secondary geographic areas and expertise in ancillary products will enable the combined company to better benefit from post-pandemic trends in the fastest growing markets.
Following the close of the transaction, the combined company will continue to be led by Jeff Lorenger, HNI’s Chairman, President, and CEO. Juster will remain in her current role with Kimball International until the closing to ensure a seamless transition.
The combined company will have pro forma annual revenue of approximately $3.1 billion and pro forma adjusted EBITDA of approximately $290 million, inclusive of annual run-rate synergies, based on each company’s respective last reported 12 months. The combination is expected to generate $25 million of annual run-rate cost synergies within three years of closing.
The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close by mid-2023, subject to the approval of Kimball International shareholders, the receipt of required regulatory approval, and the satisfaction of other customary closing conditions.
Kimball International consists of three furniture brands: Kimball, National, and Kimball Hospitality.
Kimball International is a commercial furnishings company.
