Herman Miller Inc., a furniture designer and manufacturer in Zeeland, Mich. (northeast of Holland), has agreed to acquire an additional 34 percent equity interest in HAY A/S for about $78 million. This transaction will give Herman Miller a 67 percent equity interest in HAY. Rolf and Mette Hay, co-founders and creative directors of HAY, own the remaining 33 percent.
“We are pleased to continue and expand HAY’s relationship with Herman Miller, a company whose design heritage very much inspired both modern living and Mette and I,” says Rolf Hay. “Our partnership with Herman Miller has enabled us to make our high-quality products by top designers accessible to even more people around the world.”
Herman Miller acquired the first 33 percent equity interest in HAY in 2018. HAY was founded in Copenhagen, Denmark in 2002 and offers ancillary furnishings in Europe and Asia. It is active in both the contract and residential furnishing markets. HAY offers a catalog of furniture and accessories.
“Scaling HAY is a key component in expanding our footprint within the retail and contract markets while reaching a younger, more urban demographic that we’ve been targeting for expansion,” says Andi Owen, president and CEO of Herman Miller. “I’m so proud of the design-first approach HAY has brought to an already exciting family of brands.”
Increasing ownership for Herman Miller aligns with its goal to accelerate growth. Integration into the Herman Miller ecosystem is expected to accelerate the development of the HAY brand globally.
Since the launch of HAY in North America in 2018 through retail and contract channels, Herman Miller has launched the North American eCommerce platform, starting localized production and opening locations in each Oregon, California, and Chicago.
Upon closing, Herman Miller expects to consolidate HAY’s operating results going forward and record a non-controlling interest for the remaining 33 percent minority ownership stake. Revenue for HAY’s fiscal year that ended in July totaled about $160 million. The acquisition is expected to close Dec. 2.