HNI Acquires Steelcase in $2.2 Billion Deal

Steelcase's stock surged 60% after agreeing to a $2.2 billion acquisition by HNI. Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock per share, an 80% premium over its previous closing price. The acquisition is expected to finalize by year-end, with HNI shareholders owning 64% of the combined company and Steelcase shareholders owning 36%. HNI CEO Jeffrey Lorenger said the merger will enhance their ability to serve diverse industries and deliver significant shareholder value.

Title: Steelcase Stock Surges 60% Following $2.2 Billion Acquisition by HNI

Steelcase Inc. (SCS) experienced a significant upturn in its stock price, surging by nearly 60% following the announcement of a $2.2 billion acquisition by HNI Corporation (HNI). The deal, which is expected to close by the end of the year, involves a cash and stock transaction where Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock per share. This offer represents an 80% premium over Steelcase's previous closing price of $10.18.

HNI shareholders will own approximately 64% of the combined company, while Steelcase shareholders will hold about 36%. The acquisition is expected to finalize by the end of 2025, subject to shareholder approvals and regulatory clearances. The merger is anticipated to enhance the combined company's ability to serve diverse industries, including small and medium-sized businesses, large corporations, healthcare, education, and hospitality.

Jeffrey Lorenger, HNI's CEO, stated that the merger will better meet evolving office needs, strengthen dealer and customer relationships, explore new growth opportunities, and deliver significant shareholder value. The acquisition is fully aligned with HNI's strategic framework focused on driving long-term profitable growth.

The combined company will have a pro forma annual revenue of approximately $5.8 billion and a pro forma Adjusted EBITDA of approximately $745 million. The transaction is expected to be highly accretive to non-GAAP earnings per share beginning in 2027. Annual run-rate synergies are projected to total $120 million when fully mature.

HNI and Steelcase share a deep commitment to respecting people, protecting the planet, operating with excellence, and acting with integrity. The combined company will continue to be led by Jeffrey Lorenger, with HNI's corporate headquarters in Muscatine, Iowa, and Steelcase maintaining its headquarters in Grand Rapids, Michigan.

References:
[1] https://www.gurufocus.com/news/3031731/steelcase-scs-surges-60-on-22-billion-acquisition-by-hni
[2] https://www.steelcase.com/press-releases/hni-corporation-to-acquire-steelcase-inc/