Kimball Acquires NY Furniture Maker, Reports Q1 Profits
Jasper-based Kimball International Inc. (Nasdaq: KBAL) has acquired Poppin Inc., a commercial furniture design company based in New York City. The deal is valued upwards of $180 million.
The purchase was announced just as Kimball released its first quarter earnings report. The company is reporting net income of $5.3 million, compared to $11.3 million during the same period a year ago.
The company announced in August it was laying off more than 120 workers globally, as part of a corporate restructuring. Kimball says the changes were in response to challenges in the industry brought on by the pandemic.
“Kimball International continued to effectively navigate COVID-19 related end market softness and deliver structural savings from our transformation and restructuring plans, which will significantly benefit our results as market conditions improve.,” said Kimball Chief Executive Officer Kristie Juster. “We remain on-track with Phase 2 of our restructuring program and other cost reduction initiatives, which are projected to yield cost savings of approximately $20 million in fiscal 2021.”
As far as the acquisition of Poppin, Kimball says it designs commercial-grade furniture for modern office and work-from-home environments.
The New York furniture maker operates five showrooms, but most of its business is digital sales.
“The acquisition greatly accelerates the development of our eBusiness platform, and we have identified multiple levers to drive significant revenue synergies,” said Juster.
The company says the purchase price was $110 million in cash, plus additional payments based on profitability and revenue. If all milestones are met, the deal will value at $180 million.
“This partnership with Kimball International is an important step toward accelerating our growth and enabling us to further our position as a one-stop solution for inspiring workplaces with well-designed fast and flexible commercial-grade furnishings,” said Randy Nicolau, CEO and co-founder of Poppin.
Kimball says Poppin will operate as a separate business unit within Kimball International and will continue to be led by Nicolau.
The acquisition is scheduled to close during the quarter ending December 31.
View the full earnings report by clicking here.