Herman Miller, Inc. has announced an agreement to acquire POSH Office Systems Ltd., a Hong Kong-based designer, manufacturer and distributor of office furniture systems, freestanding furniture, seating, and filing and storage.
POSH, with annual revenues of approximately $50 million in 2010, is a market leader in commercial furnishings in both Hong Kong and the People’s Republic of China. Operating with five major showroom locations, including the newly opened and largest commercial furniture showroom in Hong Kong, the company distributes through a POSH franchise network in China and more than 30 international distributors worldwide. POSH employs approximately 1,200 people, including design, engineering and manufacturing operations based in Dongguan, China.
Completion of the acquisition is pending Herman Miller’s establishment of a legal structure in China necessary to complete the transaction. The company anticipates this process will be completed early in the first quarter of fiscal 2012. The final purchase price is expected to include an upfront cash payment, due at closing, followed by a performance-based payment at the conclusion of an earn-out period.
The announcement follows a successful alliance between POSH and Herman Miller begun in September 2008. Company officials noted that through their alliance both companies have been able to leverage their respective strengths in product design and distribution to their shared advantage, while confirming a foundation of shared values.
Eric Yim, POSH president and chief executive officer, says, “In these past few years working together we have confirmed our like-minded passion for innovative, high-quality interior solutions. Equally important we found that our company cultures were well matched, with a shared commitment to good corporate citizenship through design, environmental stewardship, and high standards in the quality and care for our employees and communities. This has been the foundation for our success and we see even greater opportunity ahead.”
Brian Walker, Herman Miller’s president and chief executive officer, says, “POSH has been a great partner and I’m delighted that they are joining the Herman Miller family. China is an enormous growth opportunity and through POSH we gain immediate access to the Chinese market. As the demand for high-quality seating and furniture continues to grow in the region we anticipate a significant increase in the sales of Herman Miller products through the POSH dealer network. With an expanded product offer through POSH, we can also look beyond China to other markets and customers we’re not presently serving. Together we have a very bright future.”