ACQUISITION

On February 3, 2014, the Company acquired Holly Hunt Enterprises, Inc. The acquisition advances the Company's strategy of building its global capability as a resource for high-design workplaces and homes, including the commercial contract, decorator to-the-trade and consumer markets. The aggregate purchase price for the acquisition was approximately $95.0 million, plus certain contingent payouts of up to $16.0 million. Of the $16.0 million of contingent payouts, $5.0 million was paid in the first quarter of 2015. The remaining contingent payouts, if earned based on future performance of the business, are expected to be paid in 2016 and 2017. The purchase price was funded from borrowings under the Company's revolving credit facility. The Company has recorded the acquisition of HOLLY HUNT^® using the acquisition method of accounting and has recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The Company finalized the purchase accounting for the acquisition of HOLLY HUNT during the first quarter of 2015 as no additional adjustments were made or costs incurred from the fair values assigned since December 31, 2014.

The amount of HOLLY HUNT net sales and net earnings attributable to Knoll, Inc. stockholders included in the condensed consolidated statements of operations and comprehensive income during the three months ended (in thousands):



	March 31, 2015		March 31, 2014
Net sales	$	25,891	$	17,360
Net earnings attributable to Knoll, Inc. stockholders	$	470	$	1,106

NOTE 2. ACQUISITION (continued)

The following unaudited pro forma summary financial information presents the operating results of the combined company, assuming the acquisition had occurred as of January 1, 2013 (in thousands, except per share amounts):



	Three months ended March 31, 2014
Pro forma net sales	$	237,422
Pro forma net earnings attributable to Knoll, Inc stockholders	$	8,252

The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the results that would have been attained had the acquisition occurred on January 1, 2013, nor is it indicative of results of operations for future periods. The pro forma information presented for the three months ended March 31, 2014 includes adjustments for acquisition costs, interest expense that would have been incurred to finance the acquisition, amortization and depreciation.