Herman Miller has recently announced its plan of acquiring an 84 per cent share in contemporary furniture retailer brand 'Design Within Reach'. The purchase will go for $154 million in cash. This acquisition is part of Herman Miller’s move to become the country’s “premier lifestyle brand.”
According to the company, DWR has become the “largest and fastest growing retailer of Herman Miller’s furniture design,” and thus, buying it will make Herman Miller develop a better diversifying strategy beyond manufacturing.
Brian Walker, Herman Miller’s chief executive officer said, “The addition of DWR is a transformational step forward in realizing our strategy for diversified growth and establishing Herman Miller as a premier lifestyle brand.” Walker added, “In addition to enhancing Herman Miller’s brand visibility, we gain access to DWR’s growing and exclusive product portfolio and proven development capabilities.”
This will result to the development of a new consumer arm for the American furniture retail company while DWR will still be operated as a retail business by CEO John Edelman and president John McPhee.
“We are acquiring a complete consumer-focused infrastructure and an experienced and committed leadership team and workforce that truly values Herman Miller’s design legacy. That leadership team will skillyfully advance our consumer business while DWR gains new resources to further their growth plans,” Walker said.
Walker also noted that acquiring DWR is a part of a long-term strategic decision that will result in a “modest” profit for the company’s financial year. It has been reported that Herman Miller experienced a 29 per cent drop in profits by the end of 2013.
Herman Miller’s purchasing of DWR is one of the latest in the series of acquisitions within the furniture industry. In February, Haworth bough major percentage in Italian brands such as Cassina, Cappellini and Alias as part of the $270 million-deal with Poltrona Frau. Last year, Vitra acquired Artek which was co-founded by Alvar Aalto in 1935.
