NEW YORK (The Deal) -- Office furniture maker Herman Miller (MLHR - Get Report) is continuing to remodel its strategy, striking a deal to acquire modern furniture retailer Design Within Reach for about $154 million in cash.
Zeeland, Mich.-based Herman will acquire an approximately 84% stake in DWR, the companies said after the close of regular trading Thursday.
DWR's current CEO John Edelman and president John McPhee will maintain an approximately 8.5% interest in a newly created Herman Miller consumer division.
Herman Miller anticipates future tax benefits with a present value of approximately $10 million in connection with the acquisition. DWR shareholders will receive approximately $23 per share on a fully diluted basis, while the company's largest shareholders will also be paid an undetermined escrow amount.Stamford, Conn.-based DWR, which generated about $218 million in revenue during 2013, sells modern residential furniture and home accessories via an established e-commerce presence and throughout its 38 retail locations in the U.S. and Canada. The business will be rolled into Herman Miller's consumer unit, which currently generates only about $60 million and operates within the company's specialty and consumer segment. The deal follows a competitive auction process for DWR, according to Financo managing partner Lee Helman, who advised DWR on the transaction.