Office chair maker Herman Miller Inc said on Monday it would buy peer Knoll Inc for $1.8 billion in a cash-and-stock deal, a move that would help the company expand as offices around the world start bringing their employees back to work.
Under the terms of the deal, Herman will pay Knoll shareholders $25.06 per share, representing a 45.4% premium to Knoll’s closing price on Friday.
Knoll’s shares jumped 28.7% to $22.17 in premarket trading, while those of Herman Miller fell 13.1% to $38.51.
Herman Miller’s overall revenue fell during the COVID-19 pandemic as offices shuttered to prevent spread of the virus.
However, Herman Miller said it has opportunity for growth as corporations look to rearrange workspaces in accordance with social distancing guidelines and as some people make their work-from-home setups permanent.
Herman Miller’s shareholders will own about 78% of the combined company, which comprises 19 brands and has a presence across over 100 countries.