Published in Manufacturing

Herman Miller acquires remaining stake in U.K.-based Naughtone for $46.1 million

BY MIBIZ STAFF Tuesday, October 29, 2019 12:47pm

ZEELAND — Office furniture maker Herman Miller Inc. has acquired the remaining shares of U.K.-based furniture designer and manufacturer Naughtone for $46.1 million.

The deal, which closed Oct. 25, is expected to be accretive to earnings by 1 cent to 3 cents per share in the company’s current 2020 fiscal year, according to a statement. 

Herman Miller CEO Andi Owen COURTESY PHOTO

Zeeland-based Herman Miller (Nasdaq: MLHR) previously acquired a 50-percent stake in Naughtone in 2016 for $12.4 million. Since the initial deal, annual sales for the company have increased 35 percent. The relationship also helped Herman Miller expand its product design and development capabilities, which resulted in 11 new product launches. 

Naughtone was founded in 2005 and employs about 50 people. In its most recent fiscal year, the company generated $37 million in revenue. One-third of the company’s sales are in the U.K., while 63 percent come from North America, according to an investor presentation. 

Herman Miller CEO Andi Owen called Naughtone “a vital strategic partner in growing Herman Miller Group’s ancillary product offering,” according to a statement. 

“I’m so proud of our shared values, as well the modern aesthetic and contemporary British design they bring to our family of brands,” Owen said.

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