Herman Miller and Knoll to merge in $1.8 billion deal that will create design leader as companies reimagine office

Herman Miller and Knoll to merge in $1.8 billion deal that will create design leader as companies reimagine office

Herman Miller Inc. and Knoll Inc. said Monday they have agreed to combine in a cash-and-stock deal valued at $1.8 billion that will create a leader in modern design for the office and home just as the pandemic has companies reimagining office life and workers investing in work-from-home stations.

"This highly complementary combination will create the pre-eminent leader in modern design, catalyzing the transformation of the home and office sectors at a time of unprecedented disruption,“ the companies said in a joint statement.

Knoll shares

KNL, +35.11%

soared 34% on the news in heavy volume, with 19.4 million shares changing hands by early afternoon, or more than 72 times the average daily volume over the past 30 days. Herman Miller shares

MLHR, -8.67%

slid 11%.

Under the terms of the deal, Knoll shareholders will receive $11 in cash and 0.32 share of Hermann Miller for each Knoll share owned. Based on Herman Miller's five-day volume weighted average price of $43.94 per share, the deal implies a purchase price of $25.06 per share, equal to a premium