- 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.
For further details see:
Herman Miller Acquires Knoll At Huge Premium, Positive News For Kimball