Shares of Kimball International (NASDAQ: KBAL) soared by more than 80% in morning trading on Wednesday as HNI Corp. (HNI) announced that it was acquiring KBAL in a cash and stock deal valued at around $485 million.
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According to the terms of the agreement, Kimball shareholders will receive $9 in cash and 0.1301 shares of HNI stock in exchange for every share of KBAL. After the completion of the acquisition, Kimball stockholders will own around 10% of the combined company. The acquisition is expected to close by the middle of this year.
The combined company is expected to have pro forma annual revenue of around $3.1 billion and pro forma adjusted EBITDA of approximately $290 million, inclusive of annual run-rate synergies.
In the past year alone, KBAL stock has surged by more than 40%.
