Affluent Entrepreneur Plans to Acquire Steelcase for $2.2 Billion Dollars
HNI Corporation and Steelcase Announce Merger
In a significant move, HNI Corporation and Steelcase Inc. have agreed to a $2.2 billion cash and stock transaction, merging two major players in the workplace furniture industry. The deal values Steelcase shares at around $18.30 each, with Steelcase shareholders receiving $7.20 in cash plus 0.2192 shares of HNI stock per share.
Upon closing, HNI shareholders will own approximately 64% of the combined company, while Steelcase shareholders will own the remaining 36%. The combined company, with an annual pro forma revenue of approximately $5.8 billion, is expected to be more diversified.
The merger combines highly complementary brand portfolios, dealer networks, and geographic footprints, enabling broader customer reach across diverse industry segments, including small and medium businesses. The companies expect $120 million in annual run-rate cost synergies and project the combination will be accretive to earnings per share starting in 2027.
Jeffrey Lorenger, HNI’s Chairman, President, and Chief Executive Officer, expressed excitement about the acquisition, citing the complementary strengths of the two companies and the potential to meet evolving workplace needs. Steelcase's President and Chief Executive Officer, Sara Armbruster, shared similar sentiments, expressing her excitement about joining with HNI and redefining the world of work, workers, and workplaces.
The deal is expected to close by the end of calendar year 2025, subject to approval by HNI and Steelcase shareholders, regulatory clearances, and other customary closing conditions. JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. have committed to provide financing to HNI for the transaction, subject to terms and conditions.
J.P. Morgan Securities is serving as the exclusive financial advisor to HNI, while Goldman Sachs and BofA Securities are serving as financial advisors to Steelcase. Skadden, Arps, Slate, Meagher & Flom is serving as the legal counsel for Steelcase, and Davis Polk & Wardwell is serving as the legal counsel for HNI.
The combined company will be led by HNI's CEO, Jeffrey Lorenger, and will maintain its headquarters in both Muscatine, Iowa, and Grand Rapids, Michigan. Both companies have emphasised their commitment to putting the customer at the center of everything they do, and the merger is expected to accelerate innovation, digital initiatives, enhance customer experience, and improve financial performance.
Industry observers note that the merger creates a powerful leader in the office furniture industry, with a product range spanning from high-end designs to furniture suited for startups, leveraging Steelcase’s well-known dealer network and reputation, which could be revitalized under HNI’s leadership.
In summary, the merger creates a larger, more diverse workplace furniture company positioned to leverage combined strengths for growth and customer service improvement. The deal is expected to close by the end of 2025, subject to customary closing conditions.
The merger of HNI Corporation and Steelcase, major players in the business sector, brings together two corporations to form a larger entity in the finance industry, specifically the workplace furniture sector. With the combination of their complementary brand portfolios, dealer networks, and geographic footprints, the newly formed company aims to serve a broader customer base, including small and medium businesses.
