MUSCATINE, Iowa – HNI Corporation announced today it is acquiring Grand Rapids, Mich.-based Steelcase Inc. in a $2.2 billion deal that will merge two of the largest workplace furniture manufacturers and competitors.
The companies jointly announced HNI’s acquisition of Steelcase in a news release today, Aug. 4.
Under the agreement, Steelcase will sell its business to HNI and the combined company will continue to be led by HNI Chairman, President and CEO Jeffrey Lorenger. Both HNI and Steelcase will retain their respective headquarters in Muscatine and Grand Rapids.
According to the companies, HNI will acquire Steelcase in a cash and stock transaction totaling $2.2 billion. Under the terms, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share of Steelcase they own. The implied per share purchase price of $18.30 is based on HNI’s closing share price Friday, Aug. 1, of $50.62.
Upon closing, HNI shareholders will own approximately 64% and Steelcase shareholders will own approximately 36% of the combined company.
“This acquisition brings together two respected companies with complementary strengths and represents an exciting milestone in HNI’s growth journey,” Mr. Lorenger said in the release. “We have long admired Steelcase for its insight-led approach, which has helped shape our industry for decades.”
He continued: “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 is a manufacturer of workplace furnishings and residential building products, which operate under two segments. The company was founded more than 75 years ago. This marks its second major acquisition in three years since when its purchase of Kimball International in 2023.
Steelcase is a global design leader with more than 30 creative and technology partner brands. It manufactures furnishings and solutions for many of the places people work from the office to the home and learning and health environments.
“Joining with HNI is a bold step that marks the next era for Steelcase, our customers, dealers, and employees,” Sara Armbruster, Steelcase’s president and CEO, said in the 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.
Steelcase employs 11,300 team members and has a dealer network of about 790 locations.
The companies also highlighted these strategic benefits:
- Combines complementary portfolios and dealer networks — With highly complimentary geographic footprints and dealer networks, the merger will enhance their customer reach and bolster its ability to serve more diverse industry segments including small and medium business, large corporate, health care, education and hospitality customers.
- Brings together world-class capabilities — Uniting a strong innovation engine with operational excellence, the combined organization will accelerate delivery of more advanced solutions to customers, while increasing shareholder value.
- Strong financial profile –The combined company will have pro forma annual revenue of about $5.8 billion based on each company’s last reported 12-month results.
- Highly synergistic combination — HNI’s proven ability to combine core capabilities and deliver cost synergies will maximize the new organization’s success. Annual run-rate synergies are expected to total $120 million when fully mature.
- Accelerates strategic framework — The acquisition aligns with HNI’s strategy focused on driving long-term profitable growth. The new company will be better positioned to accelerate and increase investments in long-term operational enhancements, digital transformation and customer-centric buying experiences.
The transaction is expected to close by the end of 2025. It is subject to approval by HNI and Steelcase shareholders, regulatory approval, and other customary closing conditions. HNI will maintain the Steelcase brand after the transaction closes. In addition, the HNI Board of Directors will expand from 10 to 12 directors, including two of Steelcase’s current independent board members.
In the release, the companies said they share a deep commitment to respecting people, protecting the planet, operating with excellence and acting with integrity. For their team members, the combined organization will create new career growth opportunities as well as deliver more value for customers, and further support and invest in their home communities.
JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. have executed a commitment letter to provide committed financing to HNI. J.P. Morgan Securities LLC is serving as exclusive financial advisor to HNI, and Davis Polk & Wardwell LLP is serving as legal counsel. Goldman Sachs & Co. LLC and BofA Securities are serving as financial advisors to Steelcase, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
