USA - HNI Corporation and Kimball International, Inc. announced that they have entered into a definitive agreement under which HNI will acquire all the outstanding shares of Kimball International in a cash and stock transaction valued at approximately USD 485 million.

Under the terms of the agreement, Kimball International shareholders will receive USD 9.00 in cash and 0.1301 shares of HNI common stock for each share of Kimball International common stock they own. As a result of the transaction, Kimball International shareholders will own approximately 10% of the combined company.

“We are excited about joining with Kimball International, a high-quality company we have long admired for its recognized brands, furnishings expertise built over 70 years, and established relationships across multiple sectors. The combined company will have a stronger platform for growth, delivering significant benefits for our shareholders, members, dealers, and customers. We look forward to welcoming the talented Kimball International employees to HNI,” said Jeff Lorenger, HNI’s Chairman, President, and Chief Executive Officer.

Following the close of the transaction, the combined company will continue to be led by Jeff Lorenger, HNI’s Chairman, President, and Chief Executive Officer.

The combined company will have pro forma annual revenue of approximately USD 3.1 billion and pro forma adjusted EBITDA of approximately USD 290 million, inclusive of annual run-rate synergies, based on each company’s respective last reported 12 months. The combination is expected to generate USD 25 million of annual run-rate cost synergies within three years of closing.