A transaction for HNI Corporation’s acquisition of Kimball International is expected to close by the middle of the 2023 calendar year, subject to various approvals. The two companies announced their entering of a definitive agreement on the morning of Wednesday, March 8th.
Key terms of the cash and stock deal, valued at $485 million, include the increased combined value to customers and dealers, HNI’s ability to take advantage of Kimball International products and reach a broader customer base, the benefits to HNI from post-pandemic trends, financial benefits from growth and savings, and the similarities of culture within the companies. When the transaction is completed HNI will own 90% of the stocks with Kimball International controlling 10%.
During a March 8th conference HNI Chairman, President, and Chief Executive Officer, Jeff Lorenger, said the acquisition was ultimately carried out to benefit all parties involved and provide exceptional products. Lorenger will lead the combined company once the transaction is completed.
The business carried out on behalf of the new, combined company is not expected to see any vast changes due to the similar cultures shared by Kimball International and HNI prior to their joining together. Leaders from combined corporate organizations say they’re confident in the expanded market capabilities and look forward to new strategies based on best company practices.
HNI expects to obtain a positive Return on Investment Capital in 2024. An additional conference will take place in April to review Quarter 1 financial results for 2023.
