- HNI (NYSE:HNI) and Kimball (NASDAQ:KBAL) entered into a definitive agreement wherein the former will acquire all the outstanding shares of Kimball in a cash and stock transaction worth ~$485M.
- The consideration implies a valuation multiple of ~6.8x CY22 adjusted EBITDA, inclusive of synergies.
- Under agreement terms, Kimball shareholders will receive $9 in cash and 0.1301 shares of HNI common stock for each Kimball share owned.
- Post the transaction, Kimball shareholders will own ~10% of the combined company.
- A combined HNI and Kimball will have pro forma annual revenue of ~$3.1B and pro forma adj. EBITDA of ~$290M, inclusive of annual run-rate synergies, based on each company's respective last reported 12 months.
- The combination is expected to generate $25M of annual run-rate cost synergies within three years of closing.
- Transaction is expected to close by mid-2023.