MUSCATINE, Iowa — HNI said it plans to divest its Poppin business unit, which it acquired as part of the Kimball International acquisition. The divestiture is expected to be completed during the third quarter of 2023.

The announcement was made Aug. 8 when the company released its second quarter, fiscal year 2023, financial results. According to HNI, Kimball International's accretion moves significantly higher due to the planned exit of Poppin. Specific details of the divestiture were not released.

According to the announcement:

"The Corporation intends to divest Poppin, which was acquired by Kimball International in 2020. Based on trailing 12-month results, exiting Poppin is estimated to increase annual operating profit by $20 million while reducing annual revenue by $56 million. Poppin is classified as “held for sale” on the Corporation’s financial statements, and the divestiture is expected to be completed during the third quarter of 2023.

Poppin’s losses have masked the strength of Kimball International’s core businesses, which collectively generate strong operating margins. Further, the Corporation is increasingly confident in the strategic and financial rationale for the combination of HNI and Kimball International and confirms the previously announced annual run-rate synergies of $25 million, not including eliminating Poppin’s $20 million annual loss. In addition, the Corporation now sees the strong potential for additional synergies and will provide updates as the integration process progresses."

Poppin describes itself as a producer of modern, functional office furniture and supplies that "enable productivity and spark happiness. From startups to Fortune 500 companies, businesses rely on Poppin for complete workspace solutions that get their employees working happy.​"

Jasper-based Kimball International Inc. completed its acquisition of New York-based Poppin Inc. in December 2020. The deal for the B2B commercial furniture design company was valued at $110 million in cash, plus an additional $70 million if the company met certain revenue and profitability milestones.

HNI is an FDMC 300 ranked company. It ranks #14 with on the list of top North American wood products manufacturers.