Knoll Inc. (NYSE: KNL) closed the day at $23.30, a price that boosted its dollar volume by $6.07 a share. Knoll stock has seen its price gain nearly 35.23% on 04/19/21, showing a positive weekly performance of 38.77%. There are currently 49.14 million shares of KNL stock held by the public. Of those shares, 47.16 million can be traded. The KNL stock rose after the merger agreement news surfaced.
How will the agreement work out?
Knoll and Herman Miller Inc announced yesterday that the companies have entered a definitive agreement under which Knoll will be acquired by Herman Miller for $1.8 billion in cash and stock.
- According to the agreement, KNL shareholders will receive $11.00 in cash and 0.32 shares of Herman Miller common stock for each Knoll common share they own.
- The transaction terms imply a purchase price of $25.06 per share based on Herman Miller’s five-day volume-weighted average price of $43.74 per share, representing a 45% premium to KNL’s closing share price on April 16, 2021.
- At completion of the transaction, about 78% of the company will belong to Herman Miller, while about 22% will belong to KNL shareholders.
- Closing conditions must be satisfied for a closing date to be determined for the transaction.
- The transaction has been approved unanimously by both companies’ Boards of Directors.
With the closing of the transaction, Herman Miller will acquire all outstanding shares of KNL preferred stock from Investindustrial VII L.P. for a fixed consideration of $253 million, which represents an equivalent of $25.06 for every KNL share. The special meeting of shareholders of Knoll Inc (KNL) to be held in connection with the transaction will be attended by Investindustrial, which has entered a voting agreement to support the transaction.