The acquisition of Poltrona Frau by Haworth – one of the largest in Haworth’s history – is expected to close by the end of April this year. Haworth will then seek to acquire the remaining 41.4% share of the company through a tender offer to shareholders.
Based on currency exchange rates, the value of the entire deal could total USD 550 million to USD 600 million, Haworth CFO John Mooney said.
The proposed acquisition could help fill out Haworth’s product line-up.
Poltrona Frau Group designs and produces high-end furnishings in the home, office, education, health care and luxury interior markets. About 53% of the company’s business is in the residential segment. Its “Luxury in Motion” division — which supplies high-end interior finishes for the likes of Maserati, Jaguar and Chrysler as well as for yachts and airplanes — accounted for more than 27% of sales and was the firm’s fastest-growing division through the first nine months of 2013, with revenues up 35.5%.
Haworth and Poltrona Frau have had a partnership since 2011 to sell Poltrona Frau Group’s three high-end brands — Poltrona Frau, Cappellini and Cassina — at Haworth’s U.S. dealers.
“It certainly provides us a great opportunity to sell some of the best-known brands and high-end, craftsmanship-based products in a space that today we know we have opportunity with clients — and we know we don’t have the portfolio at Haworth to provide those products,” Mooney said.
Haworth in turn can provide Poltrona Frau Group greater access to the Asian market that the company has wanted to enter for some time, Mooney said.
“It’s really a great complementary opportunity,” he said.