HNI completes $485M acquisition of Kimball International

MUSCATINE, Iowa – HNI Corporation has completed its acquisition of Kimball International after shareholders of the Indiana-based commercial furnishings company overwhelmingly  approved the transaction, HNI announced today, June 1.  “The completion of the Kimball International acquisition represents a new chapter as we bring together two strong, successful companies with similar cultures and well-established families of […]

MUSCATINE, Iowa – HNI Corporation has completed its acquisition of Kimball International after shareholders of the Indiana-based commercial furnishings company overwhelmingly  approved the transaction, HNI announced today, June 1.  “The completion of the Kimball International acquisition represents a new chapter as we bring together two strong, successful companies with similar cultures and well-established families of brands,” Jeff Lorenger, HNI Corp.’s chairman, president and chief executive officer, said in a news release.  “The combined companies will have an unmatched comprehensive product offering positioned to benefit from post-pandemic trends,” he added. “I’m privileged to lead this talented team and look forward to the significant benefits we will deliver to our shareholders, members, dealers, and customers.” HNI first announced its plans March 8 to acquire Kimball in a $485 million deal. The move unites two Midwest office furniture giants. HNI is a manufacturer of workplace furnishings and residential building products. Kimball’s well-established family of brands in the workplace, health and hospitality segments complement the Muscatine-based HNI’s product lines.  Mr. Lorenger first shared results of this week's Kimball shareholders’ vote in a message sent Wednesday, May 31, to HNI members (employees), a company filing showed. In the company’s Stronger Together newsletter, HNI said “The overwhelming majority of shareholders voted in favor of the transaction, a true testament to the excitement and confidence in our combined companies. Tomorrow marks an exciting new chapter in our history… as we officially become Stronger Together!”    The shareholder approval marked the last step in the necessary conditions to close the transaction, HNI said.  According to HNI’s Thursday news release, the combined company creates a market leader with pro-forma revenue of approximately $3 billion and combined EBITDA of approximately $305 million, when including $25 million of synergies expected within three years of closing. As first announced in March, Kimball International shareholders are receiving $9.00 in cash and 0.1301 shares of HNI common stock for each share of Kimball International stock they owned immediately prior to the closing of the transaction. As a result, Kimball International shareholders will own approximately 10% of the combined company. HNI Corporation’s headquarters will remain in Muscatine. Kimball International is now an independent business unit of HNI Corporation and will retain its operations in Jasper, Indiana, according to Kimball's website.