In a significant corporate development, Steelcase, a prominent name in office furnishings, witnessed a dramatic increase in its stock value following the disclosure of its impending acquisition by HNI Corporation. This monumental transaction, valued at $2.2 billion in both cash and equity, signals a major consolidation within the office furniture industry.
The agreement stipulates that Steelcase shareholders will receive $7.20 in cash along with 0.2192 shares of HNI common stock for each share of Steelcase they possess. This offer translates to an implicit purchase price of $18.30 per share, calculated based on HNI's closing share price of $50.62 from the preceding Friday. This represents a substantial premium of nearly 80% over Steelcase's closing price of $10.18 on the same day.
Both entities have expressed confidence that the deal will reach its conclusion before the calendar year concludes. Post-merger, HNI's existing shareholders are projected to hold approximately 64% ownership of the newly combined enterprise, while Steelcase's shareholders will command the remaining 36%.
HNI Corporation, headquartered in Muscatine, Iowa, like Steelcase, is a manufacturer of workplace furniture and also produces residential building materials. Executives from both companies have highlighted the synergistic potential of this merger, noting that their geographical footprints and distribution networks are highly complementary. This strategic alignment is anticipated to bolster the combined entity's capacity to cater to a broader client base across various industry verticals, encompassing small and medium-sized businesses, large corporations, healthcare providers, educational institutions, and hospitality sectors.
Jeffrey Lorenger, CEO of HNI, articulated his enthusiasm for the merger, emphasizing that the inclusion of Steelcase's esteemed brand portfolio, coupled with the accelerating trend of in-office work, will position the combined company more effectively to address the evolving demands of the modern workplace. He also underscored the potential to strengthen relationships with dealers and customers, unlock fresh avenues for expansion, and deliver substantial value to the shareholders of the integrated company.
Conversely, HNI's shares experienced a decline of almost 15% shortly after the market opened on the announcement day, despite having shown little change year-to-date. In contrast, Steelcase's stock, propelled by Monday's sharp gains, transitioned into positive territory for the year 2025.
This strategic alliance is poised to create a formidable presence in the office furniture market, driven by complementary strengths and a shared vision for growth. The integration of their respective brands and networks is expected to enhance their competitive edge and service capabilities across a diverse range of clients.