Herman Miller Completes Acquisition of POSH Office Systems, Ltd.
April 3, 2012
Herman Miller, Inc. (NASDAQ: MLHR), today announced the completion of the company's previously announced agreement to acquire POSH Office Systems Ltd., a Hong Kong-based designer, manufacturer, and distributor of office furniture systems, freestanding furniture, seating, and filing and storage. POSH, with annual revenues of approximately $60 million in 2011, is a market leader in commercial furnishings in both Hong Kong and the People's Republic of China. Operating with five major showroom locations, including the largest commercial furniture showroom in Hong Kong, the company distributes through a POSH franchise network in China and more than 30 international distributors worldwide. Completion of the acquisition followed Herman Miller's establishment of a legal structure in China necessary to finalize the transaction. The final purchase price is approximately $50 million, including an upfront cash payment at closing, followed by a performance-based payment at the conclusion of an earn-out period.
The acquisition follows a successful alliance between POSH and Herman Miller begun in September, 2008. Company officials noted that through their alliance both companies have been able to leverage their respective strengths in product design and distribution to their shared advantage, while confirming a foundation of shared values.
Eric Yim, POSH President and Chief Executive Officer, said, "With the completion of the agreement we are excited to see POSH become part of the Herman Miller global family. We now have the full strength and resources of an international leader combined with the market insights, products, and experience of a highly respected Chinese furniture brand—there is tremendous opportunity for us ahead."
Brian Walker, Herman Miller's President and Chief Executive Officer, stated, "POSH has been a great partner and I'm delighted that they are joining the Herman Miller family. China is an enormous growth opportunity and through POSH we gain immediate access to the Chinese market. As the demand for high quality seating and furniture continues to grow in the region, we anticipate a significant increase in the sales of Herman Miller products through the POSH dealer network. With an expanded product offer through POSH, we can also look beyond China to other markets and customers we're not presently serving. Together we have a very bright future."
About Herman Miller
Herman Miller works for a better world around you—with inventive designs, technologies, and related services that improve the human experience wherever people work, heal, learn, and live. Its curiosity, ingenuity, and design excellence create award-winning products and services, resulting in more than $1.6 billion in revenue in fiscal 2011. Innovative business practices and a commitment to social responsibility have also established Herman Miller as a recognized global company. In 2011, Herman Miller again received the Human Rights Campaign (HRC) Foundation's top rating in its annual Corporate Equality Index and was also cited by FORTUNE as the "Most Admired" company in the contract furniture industry. Herman Miller trades on the NASDAQ Global Select Market under the symbol MLHR.