The report inferred that Design Within Reach may be unprofitable as Herman Miller expects to receive a $10 million tax benefit for the acquisition; the firm had revenue of $218 million in 2013.
Design Within Reach’s CEO and President, John Edelman and John McPhee will stay on board to manage the company as a segment of Herman Miller.
Brian Walker, CEO of Herman Miller commented, “This combination expands our reach in the higher margin consumer sector and we have identified multiple points of strategic leverage that will benefit our other segments and operations, as well as DWR's own growth plans."
Shares of Herman Miller are unchanged in extended hours trading on weak volume.
See more from Benzinga
- UPDATE: Herman Miller Announces Deal to Buy Design Within Reach Stake for ~4M
- BenzingaPro Exclusive: Paychex CEO Says HR Services Will Continue Strong Growth
- #Premarket Prep Technical Update - S&P 500 Index Futures Trading Lower
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.