Knoll To Acquire Denmark's Affordable Luxury Brand Muuto For $300 Mln Cash

(RTTNews) - Knoll, Inc. (KNL) announced Tuesday that it has signed a definitive agreement to acquire Muuto, a Copenhagen-based designer and provider of affordable luxury furniture, lighting and accessories for the workplace and home. The acquisition of Muuto is for approximately $300 million in cash, less certain customary adjustments.

The acquisition is expected to be accretive to earnings per share in 2018; EPS accretion is expected to accelerate towards $0.30 by 2021.

The transaction is expected to close in January 2018.

Following the deal, Muuto will continue to operate as an independent company headquartered in Copenhagen and will maintain its vibrant independent brand identity.

The company stated that it intends to fund the acquisition of Muuto through a combination of cash on hand and borrowings under its credit facility.

Founded in 2006 by Peter Bonnén and Kristian Byrge, Muuto provides affordable luxury workplace and residential furniture, lighting and accessories.

Knoll said the acquisition further advances its strategy of building its global capability as a go-to resource for workplaces and homes, including the commercial contract, decorator to-the-trade and consumer markets.

Andrew Cogan, Knoll President and CEO, stated, "Muuto is a 'resimercial' design-driven, creative Scandinavian brand representing global style for the workplace and home. We have been tracking their explosive emergence on the workplace and residential scene in both Europe and North America for some time now."

Cogan noted that Muuto expands the range of price points Knoll covers in the affordable luxury segment and significantly expands the Company's mix of International sales from 15 percent to 20 percent.