The impact on Knoll's New Jersey and worldwide operations isn'timmediately clear but figures to sort itself out between now andthe end of the first quarter of '01, when the contract is slated tobe completed pending regulatory review. Knoll has almost 800employees at its Mt. Olive HQ, plus another 200 at a manufacturingfacility in nearby Whippany, NJ. Worldwide, the company has 10,700employees, according to a company insider.

The two companies are expected to put together an integrationplan over the next few months, according to the Knoll executive,"but Abbott will ultimately make the decisions."

And industry observers generally agree that the move is a goodone for all concerned. Abbott Labs, for example, has mostly been ahealthcare products producer longing to be a bigger player in thepharma business. The company had attempted to buy Alza, a drugcompany, last year. Abbott will now gain some of that clout withthe acquisition of Knoll, which has been rolling out such productsas the promising new rheumatoid arthritis drug, D2E7; Meridia, anobesity treatment drug; and Synthroid, which is used to treatthyroid problems.