KNL - Herman Miller Acquires Knoll At Huge Premium Positive News For Kimball

• Herman Miller yesterday acquired Knoll for $1.8 billion.
• Knoll's stock was up +35%, whereas Herman Miller was down -9% at the news.
• Using 16x EV/EBITDA multiple from Herman Miller and Knoll acquisition, we get an implied upside for Kimball of 112%, or an attractive $30 price target.
• Consolidating industry suggests less competition which will indirectly give a boost to other furniture names.
• If this trend continues, there could be bids for Kimball and other furniture companies, which are trading at large EV/EBITDA discounts.

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