Knoll, Inc. to Herman Miller, Inc.

Home & Office Furnishings/Apr 2021/BofA, Goldman Sachs

Deal Information

Target

Knoll, Inc.

Acquiror

Herman Miller, Inc.

Sector

Home & Office Furnishings

Target Type

Public

Acquiror Type

Strategic

Advisors

BofA, Goldman Sachs

Enterprise Value

$1.8B

EV / LTM Sales

EV / LTM EBITDA

14.2x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

TV / LTM EBITDA selected range: 10.5x - 15.0x

6 comps


Oct 2019	HAY A/S	Herman Miller, Inc.	$232M	-	13.8x	-
Oct 2018	iGuzzini Illuminazione S.p.A	Fagerhult Group	$429M	-	10.8x	-
May 2018	Ekornes	QuMei Home Furnishings	$695M	-	11.6x	-
Dec 2017	Muuto	Knoll, Inc.	$304M	-	14.5x	-
May 2016	Generation Brands Holdings, Inc.	AEA Investors	$525M	-	10.5x	-
Feb 2014	Poltrana Frau Group	Haworth Inc.	$654M	-	15.1x	-
	Mean			-	12.7x	-
	Median			-	12.7x	-

EV / LTM EBITDA selected range: 11.5x - 15.6x

6 comps


Feb 2014	Poltrona Frau S.p.A.	Haworth, Inc.	-	-	15.3x	-
Mar 2015	Norcraft Companies, Inc.	Fortune Brands Home & Security	-	-	11.5x	-
Oct 2016	Fantastic Holdings	Steinhoff International	-	-	15.6x	-
Dec 2017	Muuto	Knoll, Inc.	-	-	14.3x	-
May 2018	Ekornes ASA	Qumei Home Furnishing Group	-	-	12.0x	-
Jun 2018	HAY A/S	Herman Miller, Inc.	-	-	14.0x	-
	Mean			-	13.8x	-
	Median			-	14.2x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

2 DCF scenarios

WACC: 8.5% – 10.0%
Terminal method: Exit multiple
Terminal assumption: 8.5x – 9.5x (terminal year LTM EBITDA burdened by SBC)
Forecast basis: Herman Miller-adjusted Knoll forecasts, EXCLUDING Herman Miller synergies
Forecast period: fiscal years 2021 through 2025

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
BofA	7.5% – 9.75%	Perpetuity growth	2.0% – 2.5%	Knoll management estimates	31 Dec 2020 through 31 Dec 2025	Open
Goldman Sachs 2 DCF scenarios	8.5% – 10.0%	Exit multiple	8.5x – 9.5x (terminal year LTM EBITDA burdened by SBC)	Herman Miller-adjusted Knoll forecasts, EXCLUDING Herman Miller synergies	fiscal years 2021 through 2025	Open