HNI Announces $2.2 Billion Merger with Steelcase Inc. to Enhance Customer Reach and Accelerate Strategic Initiatives.

HNI Corporation has announced a merger agreement with Steelcase Inc. in a cash and stock transaction valued at approximately $2.2 billion. The acquisition aims to enhance customer reach and accelerate strategic initiatives, creating a combined company with pro forma annual revenue of approximately $5.8 billion and annual run-rate synergies of $120 million. The transaction is expected to close by the end of 2025, pending shareholder and regulatory approvals.

HNI Corporation (NYSE: HNI) and Steelcase Inc. (NYSE: SCS) have entered into a definitive agreement for HNI to acquire Steelcase in a cash and stock transaction valued at approximately $2.2 billion. The acquisition aims to enhance customer reach and accelerate strategic initiatives, resulting in a combined company with pro forma annual revenue of approximately $5.8 billion and annual run-rate synergies of $120 million [1].

The transaction, which is expected to close by the end of 2025, is subject to shareholder and regulatory approvals. HNI shareholders will own approximately 64% of the combined company, while Steelcase shareholders will own approximately 36%. Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share they own, valuing Steelcase at approximately 5.8x TTM Adjusted EBITDA [1].

The acquisition brings together two respected companies with complementary strengths. HNI, a manufacturer of workplace furnishings and residential building products, and Steelcase, a global design leader in the world of work, will combine their geographic footprints and dealer networks to serve more customers across diverse industry segments, including small and medium business, large corporate, healthcare, education, and hospitality [1].

The combined company will have a strong financial profile with pro forma annual revenue of approximately $5.8 billion and pro forma Adjusted EBITDA of approximately $745 million. Net leverage is expected to return to pre-acquisition levels within 18-24 months [1]. The acquisition is fully aligned with HNI’s strategic framework focused on driving long-term profitable growth, and the new company will be better positioned to accelerate and increase investments in long-term operational enhancements, digital transformation, and customer-centric buying experiences [1].

Following the close of the transaction, HNI’s Chairman, President, and Chief Executive Officer, Jeffrey Lorenger, will continue to lead the combined company, with Steelcase’s headquarters in Grand Rapids, Michigan, and HNI’s headquarters in Muscatine, Iowa. HNI will maintain the Steelcase brand following the transaction’s close [1].

The transaction is expected to be highly accretive to non-GAAP earnings per share beginning in 2027. HNI and Steelcase share a deep commitment to respecting people, protecting the planet, operating with excellence, and acting with integrity. As a stronger and more diversified organization, the combined company will bring together the strengths of both HNI and Steelcase to create new career growth opportunities for team members, deliver more value for customers, and further support and invest in the communities where they operate [1].

The combined company will hold a conference call to discuss the transaction on August 4, 2025, at 8:30 a.m. Eastern Time. To listen, call (855) 761-5600 and use conference ID number 7006893. Access to a live audio webcast and slide presentation will be available on the Events & Presentations page of HNI Corporation’s website or at the following link: https://events.q4inc.com/attendee/369737700 [1].

References:
[1] https://finance.yahoo.com/news/hni-corporation-acquire-steelcase-inc-110000309.html