Herman Miller has announced that it has acquired Nemschoff, Inc. The transaction closed June 24, 2009. Nemschoff, with revenues of more than $90 million in 2008, has been purchased through a combination of $32 million in cash and the issuance of 2,041,666 Herman Miller shares. In addition, Nemschoff shareholders may be entitled to an additional payment based on the performance of the entity, as well as Herman Miller's share price, over the next two year period. More details of the purchase agreement will be found in Herman Miller's associated 8K filing.

Nemschoff is a manufacturer of healthcare furnishings, with a specific strength in soft seating and the patient care environment. Many of the Nemschoff family of products are also specified in the commercial office and education markets. The company's headquarters and largest operations are located in Sheboygan, Wisc., with additional manufacturing in Sioux Center, Iowa. Nemschoff has distribution across the United States and in Canada.

Brian Walker, Herman Miller's CEO, states, "For quite some time we've been talking about the importance of expanding the universe of customers we serve and the solutions we bring them. The recent downturn in the global economy has only reinforced how critical this is to our long-term stability and success. In the U.S. and globally, our populations are aging and growing. As a result, the demand for healthcare services continues to grow faster than the overall economy. Therefore, we have focused an ever-increasing amount of our strategic resources toward growing our product and solution portfolio for this customer segment.

"The acquisition of Nemschoff is a significant step in Herman Miller's growth strategy and further evidence of our commitment to the healthcare market, where Herman Miller has been a leader for more than 40 years. In bringing Nemschoff into the Herman Miller Healthcare business we immediately expand our product breadth and depth and accelerate our healthcare strategy. We also believe Nemschoff will benefit as we introduce its products into our healthcare distribution channel, and that cost synergies exist in the combination of Herman Miller, Brandrud and Nemschoff."

With the acquisition of Nemschoff, the combined companies offer a full range of product applications from the waiting room to administrative offices, and from the clinical lab and pharmacy to the patient room. The designs of each brand are complementary to the whole,
providing multiple performance levels and price points in the healthcare interiors category.

In announcing the purchase, Herman Miller also noted that Mark Nemschoff and Paul Nemschoff will remain actively engaged in the business. Mark Nemschoff will join the Herman Miller Board of Directors and Paul Nemschoff will retain an executive role at Nemschoff and also join Herman Miller's broader healthcare leadership team.