Knoll continues to post stellar results and make smart moves. Or maybe that should be said the other way around. On Thursday, the company announced it had acquired DatesWeiser, the highly regarded maker of exquisitely detailed, custom conference room tables, casegoods and specialty reception desks.

The acquisition of DatesWeiser makes a lot of sense for Knoll because it addresses a segment of the office furniture space that Knoll does not – the highly custom, highest end show spaces still to be found in most projects.

Knoll has demonstrated uncommon skill at adding to its “constellation of brands” in ways that benefit both Knoll and the acquired company. While we know that’s the goal of every acquisition everywhere, we also see that in many if not most cases, it doesn’t turn out that way.

In the press release announcing the company’s excellent third quarter results, Knoll CEO Andrew Cogan was quoted as saying, “In the face of a more mixed demand environment across our various end markets, we are pleased to be reporting better than industry growth and continued margin and operating profit expansion. In the quarter our HOLLY HUNT division completed the first of what we hope will be many tuck in acquisitions with the purchase of Vladimir Kagan Design Group. Known for its sensual, elegant, mid-century and contemporary designs, we believe this is a business we can leverage our HOLLY HUNT distribution to profitably grow in the years ahead.”

I assume the purchase of DatesWeiser fits Mr. Cogan’s definition of a “tuck in acquisition.” It will definitely supplement the Knoll Office offering if, as expected, the industry faces a slowdown going forward.

In his analysis of Knoll’s most recent quarterly results, our Raymond James analyst, Budd Bugatch, stated, “Despite facing a challenging domestic commercial furniture environment, Knoll delivered impressive top-line growth in its office furniture segment and a “clean” EPS beat. Furthermore, management continues to espouse progress with its lean initiatives, as office furniture margins improved ~280 basis points year-over-year. Nonetheless, the broader U.S. economy remains uncertain and Knoll is vulnerable to an industry slowdown that its office furniture peers have already noted. In addition, all of the office furniture manufacturers seem destined to face increasing pressure from rising raw material prices in the coming quarters.”

Over the past few years we’ve seen Knoll execute on its “constellation of design-driven brands and people” strategy through both internal investment in new products and acquisition. I like the concept of constellation because it recognizes the individual nature of the companies and underscores the intention to let them continue operating in the way that made them attractive as an acquisition target.

In the press release announcing this transaction, Mr. Cogan is quoted as saying “As with our other Specialty businesses, we are committed to the operational independence of DatesWeiser and its unique brand and cultural identity. All of us at Knoll look forward to working with Allan (Weiser, co-founder of DatesWeiser) and his team in the years ahead.”

So just as a constellation in the night sky consists of a grouping of stars, Knoll would seem to have three constellations:

1. Office: now consisting of Knoll Office and DatesWeiser
2. Studio: KnollStudio®, Knoll Europe, (selling primarily KnollStudio products) Richard Schultz® Design, and HOLLY HUNT®
3. Coverings: KnollTextiles®, Spinneybeck®, Edelman® Leather, and FilzFelt™

Commenting on the transaction in the press release, Allan Weiser said, “The team at Knoll has a very astute understanding of our brand and a commitment to our level of product and client engagement. Knoll is the ideal partner to accelerate our growth and build on our reputation for leading edge timeless design, craftsmanship and exceptional service. Knoll’s legendary heritage in workplace design, and the relationships that I have enjoyed with their management team over the years, make this a seamless cultural fit. I very much look forward to the years ahead.”

Founded in 1982, DatesWeiser, among the most respected contract furniture industry brands, has a flagship New York City showroom. Mr. Weiser will serve as president of DatesWeiser; he will continue to lead his experienced sales and operations teams.

As the total market for commercial office furniture in North America and Europe continues to experience significant constraints on growth, it is exceedingly interesting to watch the consolidation and acquisition strategies of the major players unfold.

Knoll’s “constellation of brands” strategy is certainly one of the most interesting, and if 2016 results are any indication, one that is working very well indeed, with the company outperforming the industry in net sales growth and delivering excellent EPS results to its investors. We wish both participants in this transaction the best of luck.

For the full press release from Knoll, go here.