RTTNews | Apr 19, 2021 10:14AM EDT

10:13 Monday, April 19, 2021 (RTTNews.com) - Herman Miller, Inc. (MLHR) shares are declining more than 11 percent after the news that the company agreed to acquire Knoll Inc. in a $1.8 billion cash and stock deal.

For the acquisition, Herman Miller will use a new debt and cash on hand. The company said it has obtained a commitment from Goldman Sachs for $1.751 billion of senior secured revolving and term loan credit facilities.

The provider of office furniture systems, seating products, other freestanding furniture elements, textiles, home furnishings, and related services worldwide said the combination will create a leader in modern design of home and office. Once the deal closes, Herman Miller shareholders will own about 78 percent of the combined entity, while Knoll shareholders will hold about 22 percent.

Currently, Herman Miller shares are at $39.38, down 11.11 percent from the previous close of $44.30 on a volume of 1,369,788. For the last 52-week period, the shares have traded in a range of $18.31-$44.90 on average volume of 377,512.

Knoll shares are at $22.84, up 32.56 percent.

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