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<p><b><font size="2">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C. &nbsp;20549<br>
</font>
<br>
FORM 8-K</b></p>
<p align="center"><b>CURRENT REPORT<br>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</b></p>
<p align="center"><br>
Date of Report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;<u>April 3, 2006</u><br>
<br>
</p>
<table border="0" cellspacing="1" width="450">
  <tr>
    <td>
    <p align="center"><b><font size="5">KIMBALL INTERNATIONAL, INC.</font></b></td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Exact name of registrant as specified in
    its charter)</font></td>
  </tr>
</table>
<p align="center"></p>
<center>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">Indiana</td>
    <td>
    <p align="center">0-3279</td>
    <td>
    <p align="center">35-0514506</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(State or other jurisdiction of</font></td>
    <td align="center"><font size="2">(Commission File</font></td>
    <td align="center"><font size="2">(IRS Employer Identification No.)</font></td>
  </tr>
  <tr>
    <td align="center"><font size="2">incorporation)</font></td>
    <td align="center"><font size="2">Number)</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="55%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="41%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">1600 Royal Street, Jasper, Indiana</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">47549-1001</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="64%" SIZE="1"></td>
    <td>&nbsp;</td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(Address of principal executive offices)</font></td>
    <td>&nbsp;</td>
    <td align="center"><font size="2">(Zip Code)</font></td>
  </tr>
</table>
</center>
<p align="center">Registrant's telephone number, including area code &nbsp;&nbsp;<u>(812)
482-1600</u></p>
<table border="0" cellspacing="1" width="350">
  <tr>
    <td>
    <p align="center">Not Applicable</td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Former name or former address, if changed
    since last report)</font></td>
  </tr>
</table>
</center>
<p align="left"><font size="2">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below):</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
<p align="center">&nbsp;</p>
<p align="center">1</p>
<hr SIZE="1">
<p><b>Item 1.01 Entry into a Material Definitive Agreement</b></p>
<p>On April 3, 2006, Kimball Electronics (Wales) Limited, (&quot;Kimball Wales&quot;), and
its parent company, Kimball Electronics Manufacturing, Inc., an indirect
subsidiary of Kimball International, Inc. (&quot;the Company&quot;), entered into an Asset
Purchase Agreement (&quot;Agreement&quot;) for the acquisition of the Bridgend, Wales, UK
manufacturing operation of Bayer Diagnostics Manufacturing Limited (&quot;BDML&quot;), and
its parent company, Bayer Healthcare, LLC (&quot;BHC&quot;), a member of the worldwide
group of companies headed by Bayer AG. </p>
<p>Kimball Wales agreed to pay BDML a sum of $25.2 million (14.4 million GBP). The
purchase price will be adjusted, in a period not to exceed 120 days, by the
difference in the final aggregate net book value of the acquired machinery,
equipment and inventory on March 31, 2006 and the $25.2 million (14.4 million GBP). The
purchase price, which was primarily for inventory, also included machinery and
equipment, records, manufacturer warranties, rights to operating contracts and
to the extent permitted by their terms or applicable law, licenses, permits,
authorizations and registrations (excluding licenses, permits, authorizations and
registrations relating to the marketing of products) of BDML. In addition, the
acquisition will constitute a transfer for the purposes of the Transfer of
Undertakings (Protection of Employment) Regulations 1981, and accordingly, the
employment contracts of the employees of BDML will not terminate and will
transfer automatically to Kimball Wales, who becomes the employees' employer.
Excluded from the Agreement are the land, building, all intellectual property
rights, certain contractual agreements including all contractual arrangements
for the sale or distribution of products, all cash, all accounts receivable and
all liabilities of BDML. The Agreement also contains representations, warranties
and indemnification provisions customary for agreements of this type. </p>
<p>The acquisition is expected to enable the Electronics Contract Assemblies
segment of the Company to capitalize on growth opportunities in the medical
market. The BDML workforce and their capabilities are anticipated to
significantly add to the Electronics' segment package of value that is offered
to medical customers and is a step in the Company's strategy to advance global
capabilities and responsiveness in electronics. Kimball Wales will lease the
current facility and will continue to provide manufacturing services to BHC for
the products BDML currently manufactures at the plant as well as seek new
medical customers for the facility. Recent sales for this facility on an
annualized basis, adjusted based on anticipated changes to the pricing structure
subsequent to the acquisition, were approximately $240 million (140 million GBP). This information
is an estimate based on historical information and anticipated pricing changes,
and is not necessarily indicative of future results.</p>
<p>The closing of the purchase was effective April 3, 2006.</p>
<p>Certain statements contained within this document could be considered
forward-looking statements under the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of words such as &quot;believes&quot;,
&quot;estimates&quot;, &quot;projects&quot;, &quot;expects&quot;, &quot;anticipates&quot; and similar expressions.
Forward-looking statements are subject to risks and uncertainties including, but
not limited to, unexpected transitional issues with the acquisition, general
economic conditions, foreign currency exchange rate fluctuations or similar
unforeseen events. <br>
&nbsp;<br>
<br>
<br>
&nbsp;</p>
<p align="center">2</p>
<p align="center"></p>
<hr SIZE="1"><center>
<p><b>SIGNATURES</b></p>
</center>
<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized. </p>
<div align="right">
  <table cellSpacing="0" border="0" cellpadding="0">
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">KIMBALL INTERNATIONAL, INC.</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">
      <p align="center">By:</td>
      <td width="300">/s/ Robert F. Schneider</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300"><hr align="left" width="70%" SIZE="1"></td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">ROBERT F. SCHNEIDER<br>
      Executive Vice President, <br>
      Chief Financial Officer</td>
    </tr>
  </table>
</div>
<p><br>
Date: April 3, 2006</p>
<p align="center">3</p>

</body>

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{"company-data": {"conformed-name": "KIMBALL INTERNATIONAL INC", "cik": "0000055772", "assigned-sic": "2520", "irs-number": "350514506", "state-of-incorporation": "IN", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-03279", "film-number": "06733982"}, "business-address": {"street1": "1600 ROYAL ST", "city": "JASPER", "state": "IN", "zip": "47549", "phone": "8124821600"}, "mail-address": {"street1": "1600 ROYAL STREET", "city": "JASPER", "state": "IN", "zip": "47549"}, "former-company": {"former-conformed-name": "JASPER CORP", "date-changed": "19740826"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported)
April 3, 2006
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in
    its charter)
Indiana
0-3279
35-0514506
(State or other jurisdiction of
(Commission File
(IRS Employer Identification No.)
incorporation)
Number)
1600 Royal Street, Jasper, Indiana
47549-1001
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(812)
482-1600
Not Applicable
(Former name or former address, if changed
    since last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below):
[   ] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
[   ] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Item 1.01 Entry into a Material Definitive Agreement
On April 3, 2006, Kimball Electronics (Wales) Limited, ("Kimball Wales"), and
its parent company, Kimball Electronics Manufacturing, Inc., an indirect
subsidiary of Kimball International, Inc. ("the Company"), entered into an Asset
Purchase Agreement ("Agreement") for the acquisition of the Bridgend, Wales, UK
manufacturing operation of Bayer Diagnostics Manufacturing Limited ("BDML"), and
its parent company, Bayer Healthcare, LLC ("BHC"), a member of the worldwide
group of companies headed by Bayer AG.
Kimball Wales agreed to pay BDML a sum of $25.2 million (14.4 million GBP). The
purchase price will be adjusted, in a period not to exceed 120 days, by the
difference in the final aggregate net book value of the acquired machinery,
equipment and inventory on March 31, 2006 and the $25.2 million (14.4 million GBP). The
purchase price, which was primarily for inventory, also included machinery and
equipment, records, manufacturer warranties, rights to operating contracts and
to the extent permitted by their terms or applicable law, licenses, permits,
authorizations and registrations (excluding licenses, permits, authorizations and
registrations relating to the marketing of products) of BDML. In addition, the
acquisition will constitute a transfer for the purposes of the Transfer of
Undertakings (Protection of Employment) Regulations 1981, and accordingly, the
employment contracts of the employees of BDML will not terminate and will
transfer automatically to Kimball Wales, who becomes the employees' employer.
Excluded from the Agreement are the land, building, all intellectual property
rights, certain contractual agreements including all contractual arrangements
for the sale or distribution of products, all cash, all accounts receivable and
all liabilities of BDML. The Agreement also contains representations, warranties
and indemnification provisions customary for agreements of this type.
The acquisition is expected to enable the Electronics Contract Assemblies
segment of the Company to capitalize on growth opportunities in the medical
market. The BDML workforce and their capabilities are anticipated to
significantly add to the Electronics' segment package of value that is offered
to medical customers and is a step in the Company's strategy to advance global
capabilities and responsiveness in electronics. Kimball Wales will lease the
current facility and will continue to provide manufacturing services to BHC for
the products BDML currently manufactures at the plant as well as seek new
medical customers for the facility. Recent sales for this facility on an
annualized basis, adjusted based on anticipated changes to the pricing structure
subsequent to the acquisition, were approximately $240 million (140 million GBP). This information
is an estimate based on historical information and anticipated pricing changes,
and is not necessarily indicative of future results.
The closing of the purchase was effective April 3, 2006.
Certain statements contained within this document could be considered
forward-looking statements under the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of words such as "believes",
"estimates", "projects", "expects", "anticipates" and similar expressions.
Forward-looking statements are subject to risks and uncertainties including, but
not limited to, unexpected transitional issues with the acquisition, general
economic conditions, foreign currency exchange rate fluctuations or similar
unforeseen events.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
KIMBALL INTERNATIONAL, INC.
By:
/s/ Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer
Date: April 3, 2006
3