A furniture maker in the area is spending $78 million to acquire a stake in a global ancillary furnishings brand, making it the company’s majority owner.
Zeeland-based Herman Miller signed an agreement to acquire an additional 34% equity interest in HAY A/S, or HAY, according to Herman Miller yesterday.
The transaction — which is expected to close Dec. 2 — follows Herman Miller’s acquisition of a 33% equity interest in HAY in 2018 and gives Herman Miller a 67% stake in HAY. The first deal’s terms included the option for Herman Miller to increase its ownership position in HAY down the line.
Rolf Hay and Mette Hay, husband-and-wife co-founders and creative directors of HAY, will own the remaining 33% of the company.
HAY’s revenue for the fiscal year that ended in July 2019 totaled about $160 million.
Since Herman Miller acquired exclusive rights to HAY in its North America retail and contract channels in 2018, along with acquiring the 33% stake, Herman Miller has launched HAY’s North American ecommerce platform, started localized production and opened locations in Chicago, Portland, Oregon and Costa Mesa, California.
“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,” said Andi Owen, president and CEO, Herman Miller.
“I’m so proud of the design-first approach HAY has brought to an already exciting family of brands.”
Rolf Hay said he and Mette Hay are “pleased to continue and expand HAY’s relationship with Herman Miller.”
“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,” he said.
Founded in 1905, Herman Miller (Nasdaq: MLHR) is a global manufacturer of furnishings and offers related technologies and services through its family of brands.
In fiscal 2018, the company generated $2.38 billion in revenue and employed nearly 8,000 people worldwide.
Founded in Copenhagen in 2002 by Troels Holch Povlsen and Rolf Hay and Mette Hay, HAY is a provider of ancillary furnishings for the contract and residential furnishing markets in Europe and Asia.