Herman Miller, Inc., announced a definitive agreement to acquire Brandrud Furniture, Inc., a Seattle-based manufacturer of healthcare furnishings. The transaction is expected to be completed in February 2008, pending the conclusion of due diligence. Terms of the transaction were not disclosed.
Brandrud is a manufacturer of healthcare furnishings, with an emphasis on seating products for patient rooms, patient treatment areas, and public spaces such as lobbies and waiting areas. Brandrud also serves the higher education and office markets. The company is expected to have 2007 sales of approximately $20 million. Brandrud and Herman Miller have shared a successful marketing alliance since October 2005.
"This acquisition supports Herman Miller's strategy of accelerating investment in high-return growth initiatives," said Brian Walker, Chief Executive Officer. "Brandrud has been increasingly recognized for its high- quality and well-designed products, making it an excellent strategic fit with our company. The acquisition enables Herman Miller to gain access to a proven product portfolio that strengthens and expands our healthcare offering. The Company also has a strong management team and excellent workforce that share both our values and our growth ambitions."
Lee Falck and Bobby Holt acquired Brandrud in 2000 and serve as co- presidents. "We welcome the opportunity to build on our healthcare expertise, design heritage, and high standards for quality and customer service with Herman Miller," said Falck. "Our experience as alliance partners for the last two years makes us confident in the success of this union."
Beth Nickels, President of Herman Miller for Healthcare, commented, "Brandrud's products complement our current offering and demonstrate a clear understanding of the needs of healthcare organizations. The acquisition of Brandrud will accelerate the momentum we have been gaining in this segment and offers further evidence of our commitment to this fast growing market."
About Herman Miller: The designs and services of Herman Miller enhance the performance of human habitats worldwide, making customers' lives more productive, rewarding, delightful, and meaningful. The company's award-winning products, complemented by furniture-management and strategic consulting services, generated $1.92 billion in revenue during fiscal 2007. Herman Miller is widely recognized both for its innovative products and business practices. In fiscal 2004 Herman Miller was named recipient of the prestigious National Design Award for product design from the Smithsonian Institution's Cooper-Hewitt, National Design Museum. In 2007 the company was again included in CRO magazine's "100 Best Corporate Citizens" and was cited by Fortune magazine as the "Most Admired" company in its industry. The company trades on the NASDAQ market under the symbol MLHR. For additional information visit www.HermanMiller.com.
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