Herman Miller, Inc., Announces the Acquisition of Nemschoff, Inc.

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Wed Jun 24, 2009 4:02pm EDT

ZEELAND, Mich., June 24 /PRNewswire-FirstCall/ -- Herman Miller, Inc. (Nasdaq:
MLHR), today announced that it has acquired Nemschoff, Inc. ("Nemschoff"). The
transaction closed June 24, 2009. Nemschoff, with revenues of more than $90
million in 2008, has been purchased through a combination of $32 million in
cash and the issuance of 2,041,666 Herman Miller shares. In addition,
Nemschoff shareholders may be entitled to an additional payment based on the
performance of the entity, as well as Herman Miller's share price, over the
next two-year period. More details of the purchase agreement will be found in
Herman Miller's associated 8K filing. 

Nemschoff is a manufacturer of high-quality, leading-edge design and is
recognized as a market leader in healthcare furnishings, with specific
strength in soft seating and the patient care environment. Many of the
Nemschoff family of products are also specified in the commercial office and
education markets. The company's headquarters and largest operations are
located in Sheboygan, Wisconsin, with additional manufacturing in Sioux
Center, Iowa. Nemschoff has distribution across the United States and in
Canada.

Brian Walker, Herman Miller's Chief Executive Officer, stated, "For quite some
time we've been talking about the importance of expanding the universe of
customers we serve and the solutions we bring them. The recent downturn in the
global economy has only reinforced how critical this is to our long-term
stability and success. In the U.S. and globally, our populations are aging and
growing. As a result, the demand for healthcare services continues to grow
faster than the overall economy. Therefore, we have focused an ever-increasing
amount of our strategic resources toward growing our product and solution
portfolio for this customer segment."

Walker continued, "The acquisition of Nemschoff is a significant step in
Herman Miller's growth strategy and further evidence of our commitment to the
healthcare market, where Herman Miller has been a leader for more than 40
years. In bringing Nemschoff into the Herman Miller Healthcare business we
immediately expand our product breadth and depth and accelerate our healthcare
strategy. We also believe Nemschoff will benefit as we introduce its products
into our healthcare distribution channel, and that cost synergies exist in the
combination of Herman Miller, Brandrud and Nemschoff."

In making the Nemschoff announcement, the company noted healthcare is an
important and growing vertical market opportunity. Relative to other sectors
of the economy, healthcare construction remains strong and is supported by
significant drivers fueling expectations for future growth. These include an
aging population, with the percentage of Americans over the age of 65
projected to grow from 12% to 20% by the year 2030. Additionally, 20% of the
recent federal government stimulus package is focused on healthcare, while
healthcare costs as a percentage of GDP are projected to grow from 16% to 20%
by the year 2017. Global demand for healthcare services and related facilities
is also expected to continue to rise.

Beth Nickels, President of Herman Miller Healthcare, said, "We are all excited
by the new opportunities this creates for our healthcare business. The
Nemschoff brand is among the very strongest in our industry and in combination
with Herman Miller Healthcare and Brandrud we bring together more than 100
years of combined healthcare interiors knowledge, research, and experience.
Together we provide the most comprehensive product portfolio in the industry."

With the acquisition of Nemschoff, the combined companies offer a full range
of product applications from the waiting room to administrative offices, and
from the clinical lab and pharmacy to the patient room. The designs of each
brand are complementary to the whole, providing multiple performance levels
and price points in the healthcare interiors category.

Nickels added, "The cultures and capabilities of the combined organizations
are also highly compatible--we share a dedication to quality healthcare
through great products that enhance the caregiver, patient, and family
experience. Each is also known for their focus on innovative design, quality
craftsmanship, great value, reliable operational performance, and a genuine
commitment to environmental sustainability."

Mark Nemschoff, CEO of Nemschoff, said, "Nemschoff is proud to offer our
reputation, capabilities and product line to support Herman Miller's
healthcare strategy. We feel the combination of these companies will bolster
each entity and we look forward to future success."

In announcing the purchase Herman Miller also noted that Mark Nemschoff and
Paul Nemschoff will remain actively engaged in the business. Mark Nemschoff
will join the Herman Miller Board of Directors and Paul Nemschoff will retain
an executive role at Nemschoff and also join Herman Miller's broader
healthcare leadership team. Commenting on these actions, Beth Nickels noted,
"Mark's wisdom and insights, particularly regarding healthcare, will be a
great addition to our Board, while Paul brings valuable experience to my
leadership team. Both will be invaluable to the successful combination of our
companies."

About Herman Miller
Herman Miller works for a better world around you--with inventive designs,
technologies and related services that improve the human experience wherever
people work, heal, learn, and live. Its curiosity, ingenuity, and design
excellence create award-winning products and services, resulting in more than
$1.6 billion in revenue in fiscal 2009. Innovative business practices and a
commitment to social responsibility have also established Herman Miller as a
recognized global company. In 2009, Herman Miller was again cited by FORTUNE
as both the "Most Admired" in its industry and among the "100 Best Companies
to Work For" in America, while Fast Company named Herman Miller among the
innovative "Companies to Watch."  Herman Miller trades on the NASDAQ Global
Select Market under the symbol MLHR.

This press release contains 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, as amended, that are based on management's beliefs,
assumptions, current expectations, estimates, and projections about the office
furniture industry, the economy, and the company itself. Words like
"anticipates," "believes," "confident," "estimates," "expects," "forecasts,"
likely," "plans," "projects," "should," variations of such words, and similar
expressions identify such forward-looking statements. These statements do not
guarantee future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict with regard to timing, extent,
likelihood, and degree of occurrence. These risks include, without limitation,
employment and general economic conditions, the pace of economic recovery in
the U.S., and in our International markets, the increase in white-collar
employment, the willingness of customers to undertake capital expenditures,
the types of products purchased by customers, competitive-pricing pressures,
the availability and pricing of raw materials, our reliance on a limited
number of suppliers, currency fluctuations, the ability to increase prices to
absorb the additional costs of raw materials, the financial strength of our
dealers and the financial strength of our customers, the mix of our products
purchased by customers, our ability to attract and retain key executives and
other qualified employees, our ability to continue to make product
innovations, the success of newly introduced products, our ability to serve
all of our markets, possible acquisitions, divestitures or alliances, the
outcome of pending litigation or governmental audits or investigations,
political risk in the markets we serve, and other risks identified in our
filings with the Securities and Exchange Commission. Therefore, actual results
and outcomes may materially differ from what we express or forecast.
Furthermore, Herman Miller, Inc. undertakes no obligation to update, amend or
clarify forward-looking statements."


SOURCE  Herman Miller, Inc.

Mark Schurman, +1-616-654 5498, mark_schurman@hermanmiller.com, or Susan
Koole, +1-616-654 5709, susan_koole@hermanmiller.com, both of Herman Miller
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