HNI Acquires Steelcase in $2.2 Billion Deal, Expecting $5.8 Billion in Combined Revenue

Steelcase's stock surged 50% in premarket trading after HNI Corporation announced a $2.2 billion deal to acquire the office furniture giant. Under the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 HNI shares for each share they own. The combined firm is expected to generate $5.8 billion in annual revenue and $745 million in adjusted EBITDA. The deal is expected to close by the end of 2025, after regulatory and shareholder approval.

HNI Corporation (NYSE: HNI) has announced a definitive agreement to acquire Steelcase Inc. (NYSE: SCS) in a cash and stock transaction valued at approximately $2.2 billion. The acquisition, expected to close by the end of 2025, will see HNI shareholders own approximately 64% of the combined company, while Steelcase shareholders will hold about 36% [1].

Under the terms of the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share they own. The implied per share purchase price is $18.30, based on HNI’s closing share price of $50.62 on August 1, 2025 [1]. The valuation multiple at transaction close for Steelcase is approximately 5.8x TTM Adjusted EBITDA, inclusive of run-rate cost synergies of $120 million [1].

The combined company will have pro forma annual revenue of approximately $5.8 billion and pro forma Adjusted EBITDA of approximately $745 million, with a net leverage of 2.1x [1]. The deal is expected to be highly accretive to non-GAAP earnings per share beginning in 2027 [1].

HNI Corporation and Steelcase Inc. believe that the acquisition will enhance customer reach, unite world-class capabilities, and accelerate strategic initiatives. The combined company will leverage HNI’s and Steelcase’s complementary portfolios and dealer networks to better serve diverse industry segments, including small and medium business, large corporate, healthcare, education, and hospitality customers [1].

The transaction is subject to approval by HNI and Steelcase shareholders, the receipt of required regulatory clearances, and the satisfaction of other customary closing conditions [1].

References:
[1] https://www.steelcase.com/press-releases/hni-corporation-to-acquire-steelcase-inc/