MUSCATINE, Iowa – HNI Corporation has agreed to buy Steelcase Inc., and merge the two companies “to capture industry tailwinds and unlock new opportunities” expected as its customers’ workforces return to the office.
HNI announced Monday, Aug. 4, it will purchase the Grand Rapids, Michigan-based office furniture maker in a cash-and-stock deal valued at about $2.2 billion. Under the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they own.
Upon the transaction’s closing, HNI shareholders will own about 64% of the combined company and Steelcase shareholders will own about 36%.
“With the Steelcase portfolio of brands and as in-office work trends accelerate, we will be even better positioned to meet the evolving needs of the workplace, enhance dealer and customer relationships, unlock new opportunities for growth, and create compelling value for the combined company’s shareholders,” HNI Chairman, President and CEO Jeffrey Lorenger said. “This acquisition brings together two respected companies with complementary strengths and represents an exciting milestone in HNI’s growth journey,” he added in the news release.
As part of the agreement, HNI and Steelcase will retain their respective headquarters in Muscatine and Grand Rapids. HNI’s furniture brands include Allsteel, HON, Gunlock and Kimball International.
HNI said in an SEC filing it does not anticipate relocating HNI members or Steelcase employees after the merger. The combined company will maintain the Steelcase brand.
When the merger is complete, Mr. Lorenger will continue to lead the newly combined HNI. Together, they will manufacture and sell some of the industry’s most respected and widely recognized brands, the release said.
With the acquisition, HNI projects the combined company will have $5.8 billion in annual net sales.
‘Future together’
During a conference call with investors – also held on Aug. 4 – Mr. Lorenger said the acquisition aligns with HNI’s strategic framework focused on driving long-term profitable growth.
HNI’s investment and expansion with Steelcase comes as the office furniture industry anticipates increased product demand with the business world continuing to bring their employees back to the office to work.
During the pandemic, practices shifted toward remote work and work from home options, but many companies now are asking their workforces to return to their office locations. There also is, however, an emerging trend by many companies to offer a hybrid model that offers flexibility between working at home and in the office.
“We believe the workplace industry is returning to growth after five years of softness,” Mr. Lorenger told investors. He added that the new company will be better positioned to reach “more customers in more places with more solutions.”
In a written message to Steelcase employees, he said “HNI has long admired what you have built at Steelcase – your reputation as a design and thought leader, your creative and collaborative culture, and your insight-led approach has helped share our industry for decades. The people and talent at Steelcase are key reasons we are excited about our future together,” he continued.
Steelcase was founded in 1912 as the Metal Office Furniture Company. It is a global design leader with more than 30 creative and technology partner brands and it manufactures furnishings and solutions for the places where work happens.
Steelcase, which employs a 11,300-person workforce, boasts 780 store locations around the globe. In fiscal 2025, it reported annual revenue of $3.2 billion.
HNI, now more than 75 years old, manufactures workplace furnishings and residential building products, operating under two segments. It employs 7,100 people worldwide. HNI was founded in 1947 in Muscatine by visionaries C. Maxwell Stanley, Clement Hanson, and H. Wood Miller.
The deal, which is subject to HNI and Steelcase shareholders’ approval as well as regulatory approval, is expected to close by the end of 2025. Until it closes the two companies will operate as separate companies.
Second major acquisition
For HNI, this marks its second major acquisition in three years. In June of 2023, HNI acquired Kimball International, an Indiana-based commercial furnishings company, in a $485 million transaction – uniting the two Midwest industry giants.
Mr. Lorenger said at the time those combined companies “will have an unmatched comprehensive product offering positioned to benefit from post-pandemic trends.”
Kimball manufactures a well-established family of brands for the workplace, health and hospitality segments.
In fact, he pointed to HNI’s success in integrating Kimball into the company in this month’s investor conference call. The integration, he said, “has proven we have a playbook utilizing cross-functional teams, focused on the right priorities, driving processes that deliver results.”
Of the Steelcase transaction, Mr. Lorenger said “We could not be more excited about the future as we bring together our combined capabilities to create new career growth opportunities for team members and dealer partners, deliver more value for customers, and further support and invest in the communities where we operate.”
“Joining with HNI is a bold step that marks the next era for Steelcase, our customers, dealers, and employees,” Steelcase President and CEO Sara Armbruster said in HNI’s release. “Together, we will be positioned to redefine what’s possible in the world of work, workers, and workplaces.”
“Like Steelcase, HNI is an organization that leads with purpose, shares similar values, and puts the customer at the center of everything they do. I’m excited to see this combination shape our industry,” she added.
The Steelcase leader, who also participated on the conference call, said the company was established as an innovator and thought leader “always keeping our customers’ needs at the forefront of everything we do.”
The more than century-old company has added new capabilities and teams in recent years to launch next-generation products, she said.
“As part of HNI, we will continue pursuing our strategy of enhancing the work experience and helping people do their best work wherever work happens,” Ms. Armbruster added. “And that’s why I’m so confident that this is a win for all of our stakeholders.”
The new company, HNI said, will be better positioned to accelerate and increase investments in long-term operational enhancements, digital transformation and customer-centric buying experiences. The combination also will assist in expanding to serve more diverse industry segments including small and medium business, large corporate, health care, education and hospitality customers.
Mr. Lorenger said Steelcase’s global footprint spans 800 dealer locations in more than 80 countries. “By maintaining and growing Steelcase’s distribution networks and strong corporate relationships, HNI will have a broader coverage across multiple customer segments within the workplace furnishings industry.”
“Combined, we’ll have an enhanced financial profile that will increase our ability to invest in operational and transformative strategies for the benefit of our customers, dealers, and members,” he added.
AT A GLANCE
HNI Corporation
Headquarters: Muscatine, Iowa.
About: HNI Corp. is a manufacturer, designer and provider of workplace furnishings and residential building products that improve where people live, work and gather.
Founded: In 1947 in Muscatine by visionaries C. Maxwell Stanley, Clement Hanson, and H. Wood Miller.
Current leadership: Jeff Lorenger, chairman, president and CEO. He will continue to lead the combined HNI after merging in Steelcase.
Employees: 7,100 members worldwide.
Furniture brands: 26 industry-leading brands including Allsteel, HON, Gunlock and Kimball International.
2024 net sales: $2.526 billion; net income of $139.5 million.
Website: hnicorp.com
AT A GLANCE
Steelcase Inc.
About: Steelcase is a global leader in office furniture, interior architecture and space solutions for many of the places where work happens including offices, hospitals and classrooms.
Headquarters: Grand Rapids, Michigan.
Founded: In 1912 as the Metal Office Furniture Company in Grand Rapids.
Current leadership: Sara Armbruster, president and CEO.
Workforce: 11,300 employees.
Sales network: Steelcase dealers span about 790 locations globally.
Annual revenues: $3.2 billion in fiscal 2025.
Website: Steelcase.com
