Herman Miller, Inc. announces an agreement to acquire Maharam Fabric Corporation, a New York-based designer and provider of textiles for commercial, healthcare and residential interiors.
Maharam, with revenues of approximately $105 million in 2012, will be purchased for approximately $156 million in cash. A fourth-generation family business founded in 1902 by Louis Maharam, the company has evolved and grown to be a leader in design-driven textiles for interiors in North America. The transaction is scheduled to close at the end of April.
Brian Walker, Herman Miller’s CEO, says, “The combination of Herman Miller and Maharam is a natural and complementary union anchored in our shared values and built on years of business cooperation and personal friendship. Our respective and combined operational strengths and resources provide immediate, mutual strategic leverage.”
Ben Watson, Herman Miller’s executive creative director, noted, “The cultures of the combined organizations are highly compatible—we share an unwavering dedication to authored design, product innovation and operational excellence in service to our customers. We are also unified in our commitment to sharing our success with employees and in giving back to our communities through environmental sustainability and socially responsible business practices.”
Herman Miller has made the retention of Maharam’s leadership a priority, with Michael and Stephen Maharam, CEO and COO, respectively, remaining active in day-to-day management for the coming two years while other existing senior leadership prepares to assume expanded roles. Additionally, an ongoing executive advisory board has been established, including Michael Maharam, other veteran executives, and Herman Miller’s Ben Watson.
“Much as we’ve struggled with this decision, our philosophical kinship with Herman Miller helped make this difficult step a far easier one,” says Michael Maharam, CEO. “Beyond our shared objectives in design leadership, we consider Herman Miller to be an esteemed organization intent on doing well by its staff, clientele and the community. We believe they have the complementary intellect and resources to ensure Maharam a bright future while valuing our spirit and ways, and permitting the continued evolution of our unique approach.”