Herman Miller Inc., a manufacturer of furniture based in Zeeland (southwest of Grand Rapids), today announced that it has acquired the remaining shares of contemporary British furniture designer Naughtone for approximately $46.1 million.
Herman Miller acquired a 50 percent stake in the company in 2016 to enhance its global offering in ancillary and collaborative furnishings. As a result, Naughtone has generated average annual sales growth of 35 percent over the past three years and Herman Miller expanded its product design and development capabilities, fueling 11 new product launches.
“Naughtone has been a vital strategic partner in growing Herman Miller Group’s ancillary product offering,” says Andi Owen, president and CEO of Herman Miller. “I’m so proud of our shared values, as well the modern aesthetic and contemporary British design they bring to our family of brands.”
Based in Harrogate, North Yorkshire, Naughtone was founded in 2005 and has grown rapidly in the collaborative furniture market. Known for contemporary design and high-quality manufacturing, particularly in upholstery, Naughtone’s products such as the Always chair range, the Polly chair, and the Viv chair are used by clients around the world.
“Our partnership with Herman Miller has helped us significantly grow our global market presence, especially in North America,” says Matt Welsh, vice president of sales for Naughtone. “This expanded relationship sets us up for continued success, and we look forward to working together in this new capacity to achieve great results.”
Herman Miller expects to consolidate Naughtone’s operating results following the closing date of this transaction. Net sales for Naughtone’s most recent fiscal year that ended in May 2019 totaled approximately $37 million. Excluding potential one-time purchase accounting adjustments, this transaction is expected to have an incremental $0.01 to $0.03 accretive impact on earnings per share in the remaining seven months of fiscal 2020.
