Herman Miller acquires Maharam for $156M
Herman Miller has announced it will be acquiring Maharam Fabric Corp. of New York on April 29 for $156 million in cash.
The Zeeland based office furniture manufacturer said Maharam had revenues of approximately $105 million in 2012.
Maharam is a fourth generation family business started in 1902 with sales of fabric remnants from a pushcart. Today, Maharam designs and supplies high-end interior textiles for commercial, health care and residential interiors.
The company employs 250 and collaborates with a global network of independent product designers and textile producers.
“The combination of Herman Miller and Maharam is a natural and complementary union anchored in our shared values and built on years of business cooperation and personal friendship. Our respective and combined operational strengths and resources provide immediate, mutual strategic leverage,” said Brian Walker, Herman Miller CEO.
He added that it represents an “opportunity and ambition to extend our joint reach into exciting new arenas.”
Herman Miller said the acquisition is expected to be immediately accretive to earnings, and it will also serve to reinforce and accelerate Herman Miller’s Collection initiative and support further opportunities in consumer and commercial markets.
Ben Watson, Herman Miller’s executive creative director, said Herman Miller is “committed to retaining Maharam’s operational independence” and identity, so retention of Maharam’s management leadership is “a priority.”
Michael and Stephen Maharam, CEO and COO, respectively, will remain in management for the coming two years, while other existing senior management prepares to assume expanded roles.
Herman Miller has set up an ongoing executive advisory board to help ensure “business continuity and successful integration” of Maharam.
“Much as we’ve struggled with this decision, our philosophical kinship with Herman Miller helped make this difficult step a far easier one,” said Michael Maharam. “Beyond our shared objectives in design leadership, we consider Herman Miller to be an esteemed organization intent on doing well by its staff, clientele and the community.
"We believe they have the complementary intellect and resources to ensure Maharam a bright future, while valuing our spirit and ways and permitting the continued evolution of our unique approach,” he said.