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HNI Corporation has announced plans to acquire office furniture firm Steelcase in a cash-and-stock transaction valued at approximately USD 2.2 billion. The deal, unveiled earlier this week, will result in the formation of a combined entity expected to generate annual revenue of around USD 5.8 billion. Steelcase shareholders will receive USD 7.20 per share in cash and 0.2192 shares of HNI common stock for each Steelcase share. The transaction reflects a premium of nearly 80 per cent over Steelcase's prior closing price.
HNI Corporation, a US-based office furniture and hearth products company, has agreed to acquire Steelcase in a cash-and-stock deal announced earlier this week. The transaction, valued at roughly USD 2.2 billion, is structured to provide Steelcase shareholders with USD 7.20 in cash and 0.2192 shares of HNI for each share held. The implied total value per share stands at approximately USD 18.30, marking a significant premium over recent market valuations. Advertisement
Following the transaction, HNI shareholders are set to own nearly 64 per cent of the combined entity, while Steelcase shareholders will hold the remaining 36 per cent. The merger is anticipated to close by the end of the year, pending customary closing conditions and regulatory approvals. Leadership of the unified company will remain with HNI's existing chairman, president and chief executive officer, who will also continue to serve as board chair.
Both companies are expected to continue operating under their respective brands and retain their headquarters - HNI in Iowa and Steelcase in Grand Rapids, Michigan. Executives from both firms noted that the acquisition reflects shared values and customer-centric cultures. The consolidation is expected to bring strategic benefits across several verticals including healthcare, education, hospitality and the broader corporate sector.
The combined entity is projected to generate approximately USD 5.8 billion in annual revenue and achieve USD 120 million in run-rate cost synergies. HNI anticipates the deal will become accretive to earnings per share by 2027. The deal arrives amid a resurgence in demand for high-quality, ergonomic office furniture, as businesses continue to adapt their workspaces for hybrid and in-office models. While Steelcase's share price surged in response to the news, HNI's stock experienced a dip, largely attributed to investor caution over deal integration and equity dilution.
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