Capital Calls: Big Chair emerges from pandemic office shutdowns

MillerKnoll

19/04/2021 15:41

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    ZURICH, April 19 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
 
    ------------------------------------------------
BIG CHAIR. Think about your office chair. The one in the actual
office, not the one bought online with your own money so you
could work from home. While it may have faded from memory, it
hasn’t been replaced and will be there when you get back.
Whenever that is. 
    Workplace shutdowns have meant no new chairs, or desks on
order from big corporations. That’s been dismal for office
equipment makers like Herman Miller  MLHR.O  and Knoll  KNL.N .
So they announced a merger https://www.hermanmiller.com/content/dam/hermanmiller/documents/investors/Herman_Miller_and_Knoll_Press_Release.pdf:
 Welcome Big Chair. Miller will pay $1.8 billion, a chunky 45%
premium to Friday’s closing stock prices. If that sounds cushy,
it’s not compared to pre-pandemic expectations. 
    Before lockdowns hit, Knoll shares traded above $26, below
Miller’s current outstretched offer. But there’s some cushion to
consider. Miller sees $100 million of synergies within two
years. Their net present value is nearly twice the premium it’s
paying. Since Knoll investors are getting some of their
consideration in stock, they can take this deal sitting down.
(By Rob Cox) 
        
    On Twitter http://twitter.com/breakingviews
    
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    Nvidia-Arm deal  urn:newsml:reuters.com:*:nL1N2MC1CH 
    Goldman’s Starling bet signals faith in UK savers
 urn:newsml:reuters.com:*:nL4N2MC30K
    Rosatom suffers fallout from Kremlin meddling  urn:newsml:reuters.com:*:nL4N2MC2CB
    

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