HNI To Buy Kimball For $485 Mln; KBAL Surges In Pre-market

(RTTNews) - HNI Corporation (HNI), an office furniture maker, and Kimball International, Inc. (KBAL), a furniture firm, announced on Wednesday that they have agreed to HNI buying Kimball for around $485 million in a cash and stock.

Following the news, KBAL was trading up around 67 percent at $11.29 in pre-market on the Nasdaq.

The acquisition is expected to boost HNI's workplace furnishings segment. According to the deal, scheduled to be closed by mid-2023, Kimball shareholders will receive $9 in cash and 0.1301 HNI share for each share of Kimball.

Post transaction, Kimball shareholders will own around 10 percent of the combined company.

The combined company will have pro forma annual revenue of around $3.1 billion and pro forma adjusted EBITDA of approximately $290 million.

The new company is expected to record $25 million of annual run-rate cost synergies within three years of closing.