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Knoll Announces Plan to Acquire Muuto; Muuto's Fast-Growing Affordable Luxury
Brand Perfect Complement to Knoll's Timeless Design Portfolio
East Greenville, PA, December 12, 2017, Knoll, Inc. (NYSE:KNL) and Muuto today
announced that Knoll, Inc. has signed a definitive agreement to acquire Muuto, the
Copenhagen-based designer and provider of affordable luxury furniture, lighting and
accessories for the workplace and home.
The acquisition further advances the Knoll 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.”
“Muuto products pair seamlessly with the range of modern Knoll designs, offering an
expanded breadth and depth of affordable luxury products that reflect today’s evolving
workstyles and trends in residential design, with particular appeal to a younger
generation of architects, designers and clients and those seeking a homier, more relaxed
aesthetic,” he added.
Mr. 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.
Founded in 2006 by Peter Bonnén and Kristian Byrge, Muuto, which means “new
perspective” in Finnish, has grown into a global brand providing affordable luxury
workplace and residential furniture, lighting and accessories. Muuto works with leading
contemporary designers to offer a new vision of Scandinavian design. Over the past
three years, Muuto has grown its top line by a 33 percent CAGR to approximately $75.0
million. Muuto’s asset light model, which utilizes an innovative supply chain, has allowed
Muuto to leverage this volume to grow EBITDA at over a 40 percent CAGR to
approximately $21.0 million. In addition, the Muuto team has built a singular brand
reputation for design excellence in Europe, North America and Asia.
Mr. Bonnén and Mr. Byrge stated, “Knoll is the perfect permanent home for Muuto. Over
the past decade, we are proud to have built a business that honors the best of
Scandinavian design and that is relevant for a new generation of clients seeking beauty,
elegance and affordability. The culture and team we have assembled to run the business
are aligned with the values upon which Knoll was founded almost 80 years ago.”
Mr. Cogan also noted that the Company’s goal is to double Muuto’s business in three to
five years. Today, approximately 80 percent of Muuto’s business is outside of North
America. He cited the opportunity to strengthen client and dealer relationships in North
America and Europe as well as further expand Muuto’s reach to Millennial designers and
purchasers in the “resimercial” and residential markets.
Commenting on the transaction, Anders Cleemann, Muuto CEO, said, "Muuto and Knoll
pursue perfection in design and quality. Knoll is an extraordinary partner to assure the
Exhibit 99.1
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continued growth of our brand to wider audiences. We share Knoll's commitment to
working with residential clients and companies that are transforming their work
environments as their employees’ workstyles evolve.”
Mr. Cogan added, “We are pleased to welcome the Muuto team to the Knoll constellation
of brands. Muuto strengthens our ability to compose integrated solutions from products
and services that naturally work together. Muuto also opens up new sources of revenue
for Knoll dealers to complement their focus on our existing Office and Specialty product
lines and enhances our offering for Knoll Space residential partners."
Muuto will continue to operate as an independent company headquartered in
Copenhagen and will maintain its vibrant independent brand identity.
The acquisition of Muuto for approximately $300.0 million in cash, less certain customary
adjustments, is expected to be accretive to earnings per share (EPS) in 2018; EPS
accretion is expected to accelerate towards $0.30 by 2021.
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.
The transaction is expected to close in January 2018.
Investor Conference Call
Knoll, Inc. will host a conference call at 10:00 a.m. ET on Wednesday, December 13,
2017 to discuss its acquisition of Muuto. The call will include slides; participants are
encouraged to listen and view the presentation via webcast at http://www.knoll.com.
To access the webcast, go to www.knoll.com,"Discover Knoll," and click on "Investor
Relations."
The conference call may also be accessed by dialing:
North America (844) 778-4138
International (661) 378-9550
Passcode 546 7099
A replay of the webcast can be viewed by visiting the Investor Relations section of
the Knoll, Inc. corporate website. In addition, an audio replay of the conference call
will be available through December 20, 2017 by dialing (855) 859-2056. International
replay: (404) 537-3406 (Passcode: 546 7099).
Cautionary Statement Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements regarding Knoll, Inc.’s expected
future financial position, results of operations, revenue and profit levels, cash flows,
business strategy, budgets, projected costs, capital expenditures, products, competitive
positions, growth opportunities, plans and objectives of management for future
operations, the planned acquisition of Muuto, as well as statements that include words
such as "anticipate," "if," "believe," "plan," “goals," "estimate," "expect," "intend," "may,"
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"could," "should," "will," and other similar expressions are forward-looking statements.
This includes, without limitation, our statements and expectations regarding any current
or future recovery in our industry, and our expectations with respect to leverage. Such
forward-looking statements are inherently uncertain, and readers must recognize that
actual results may differ materially from the expectations of Knoll management. Knoll
does not undertake a duty to update such forward-looking statements. Factors that may
cause actual results to differ materially from those in the forward-looking statements
include corporate spending and service-sector employment, price competition,
acceptance of Knoll’s new products, the pricing and availability of raw materials and
components, foreign exchange rates, transportation costs, demand for high quality, well
designed furniture and coverings solutions, changes in the competitive marketplace,
changes in trends in the market for furniture or coverings, the financial strength and
stability of our suppliers, customers and dealers, access to capital, our success in
designing and implementing our new enterprise resource planning system, our ability to
complete the acquisition of Muuto, our ability to successfully integrate acquired
businesses, including Muuto, and other risks identified in Knoll’s Annual Report on Form
10-K, and other filings with the Securities and Exchange Commission, as well as other
cautionary statements that are made from time-to-time in Knoll’s public communications.
Many of these factors are outside of Knoll’s control.
About Knoll, Inc.
Knoll is a constellation of design-driven brands and people, working together with our
clients to create inspired modern interiors. Our internationally recognized portfolio
includes furniture, textiles, leathers, accessories, and architectural and acoustical
elements brands. These brands - Knoll Office, KnollStudio, KnollTextiles, KnollExtra,
Spinneybeck | FilzFelt, Edelman Leather, HOLLY HUNT, and DatesWeiser - reflect our
commitment to modern design that meets the diverse requirements of high performance
workplaces and luxury interiors. A recipient of the National Design Award for Corporate
and Institutional Achievement from the Smithsonian`s Cooper-Hewitt, National Design
Museum, Knoll is aligned with the U.S. Green Building Council and the Canadian Green
Building Council and can help organizations achieve Leadership in Energy and
Environmental Design (LEED) workplace certification. Knoll is the founding sponsor of
the World Monuments Fund Modernism at Risk program.
Investors:
Charles W. Rayfield
Senior Vice President and Chief Financial Officer
Tel 215 679-1703
crayfield@knoll.com
Media:
David E. Bright
Senior Vice President, Communications
Tel 212 343-4135
dbright@knoll.com
