Furniture maker buys stake in Danish company for $66M
A furniture maker in the area has spent $66 million to acquire part of a global ancillary furnishings brand.
Zeeland-based Herman Miller said today it acquired a 33-percent equity interest stake in Horsens, Denmark-based Nine United Denmark A/S, or HAY.
The company will have the option to increase its ownership stake in the future.
Herman Miller also acquired the rights to the HAY brand in North America for about $5 million.
HAY’s revenue for the fiscal year that ends in July 2018 is expected to total about $155 million.
The transaction is expected to be accretive to Herman Miller’s earnings per share in fiscal 2019.
“HAY is one of the best-articulated design brands in the furnishings space,” said Brian Walker, CEO, Herman Miller. “HAY is a key building block toward our stated priority to scale our consumer business. The HAY assortment will significantly expand our offer to a younger, more urban demographic that we have targeted for expansion.”
Rolf Hay, co-founder of HAY, said Herman Miller is “the perfect partner” to help HAY expand in North America.
“On a personal level, Herman Miller and the work of Charles and Ray Eames are big reasons I do what I do today, and I am excited to align with a company that shares our sense of purpose and values,” Hay said.
Rolling out HAY
Over the course of the coming year, HAY’s goods will be available through Herman Miller’s Design Within Reach channels.
Herman Miller will also launch a HAY online store and open four HAY retail locations in North America.
HAY products will be integrated into the offerings to Herman Miller’s North American and international dealers.
HAY’s existing management team, led by CEO Henrik Steensgaard, will continue “driving the HAY brand, its product development and its efforts in Europe and Asia” from the HAY headquarters in Denmark.
Steensgaard will report to a new HAY Board of Directors chaired by Troels Holch Povlsen, a co-founder of HAY.
Herman Miller (Nasdaq: MLHR) is a 113-year-old company that had fiscal 2017 revenue of $2.28 billion and employed nearly 8,000 people worldwide.
Founded in Copenhagen in 2002 by Troels Holch Povlsen and Rolf Hay and Mette Hay, HAY is a provider of ancillary furnishings for the contract and residential furnishings markets in Europe and Asia.