HNI Corporation, a US-based office furniture and hearth products company, has agreed to acquire Steelcase, an international manufacturer of furniture, seating, storage and partitioning systems company in a cash-and-stock deal.
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.
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. 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.
