BP Ergo will operate as a focused, stand-alone business with a unique brand position and strategy under HNI’s split and focus business model. The acquisition is expected to have minimal impact on 2012 earnings.
"We’re excited about the addition of BP Ergo to HNI. BP Ergo’s strong brand, significant customer base and solid manufacturing capabilities provide opportunity to drive aggressive growth in India, one of the largest and fastest growing office furniture markets in the world. Our entry into India complements our experience and success in China and supports our international strategy for expansion in fast-growing economies. This is a great opportunity to leverage HNI’s broad capabilities and office furniture expertise to build BP Ergo’s strong position in India, drive improved customer performance and deliver long-term profitable growth," said Stan Askren, Chairman, President and CEO of HNI Corporation.
BP Ergo was founded in Mumbai in 1992. It goes to market through 10 sales branches and a nationwide network of dealers servicing a wide range of Multi-National Corporations and State Owned Enterprises in sectors like Banking and Insurance, IT, telecom, automotive and pharmaceuticals. Commenting on the sale, Dr. Gita Piramal said: “I am confident that as a global leader HNI will bring needed capabilities and investments to BP Ergo allowing it to grow and flourish into a stronger and more capable market leader. The sale to HNI will allow me to pursue my writing and research career as a business historian.”
Vikram Sharma, an executive with successful experiences in the US and India, will continue to lead BP Ergo in his role as Managing Director reporting to Marco Molinari, Executive Vice President, HNI Corporation and President, HNI International.
“Over the last twenty years, BP Ergo has built a strong foundation and leadership position within the Indian office furniture market. Being able to now access HNI’s broad set of capabilities in areas like branding, product development, distribution and manufacturing will allow it to bring new and innovative solutions to demanding customers in an effective and efficient manner,” said Marco Molinari, Executive Vice President, HNI Corporation and President, HNI International.
About HNI
HNI Corporation is a NYSE traded company (ticker symbol: HNI) providing products and solutions for the home and workplace environments. HNI Corporation is the second largest office furniture manufacturer in the world and is also the nation’s leading manufacturer and marketer of gas- and wood-burning fireplaces. The Corporation’s strong brands, including HON®, Allsteel®, Gunlocke®, Paoli®, Maxon®, Lamex®, HBF® , Artco-BellTM, Midwest Folding ProductsTM, LSI Corporation of AmericaTM, Heatilator®, Heat & Glo®, Quadra-Fire® and Harman StoveTM have leading positions in their markets. HNI Corporation is committed to maintaining its long-standing corporate values of integrity, financial soundness and a culture of service and responsiveness. More information can be found on the Corporation’s website at www.hnicorp.com.
Sourced From: Genesis Burson-Maresteller
