Shares of Steelcase (SCS) soared more than 50% Monday morning after the office furniture maker agreed to be acquired by HNI Corporation (HNI) for $2.2 billion in cash and stock.
Shareholders of Grand Rapids, Mich.-based Steelcase would receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they own, with an implied purchase price of $18.30 based on HNI’s closing share price of $50.62 Friday. That would represent a nearly 80% premium to Steelcase’s closing level of $10.18 Friday.
The transaction is expected to close by the end of the calendar year, the companies said. Upon closing, HNI shareholders would own about 64% and Steelcase shareholders roughly 36% of the combined firm.
Muscatine, Iowa-based HNI also makes workplace furnishings, as well as residential building products. The firms said their “geographic footprints and dealer networks are highly complementary, which bolsters the combined company’s ability to serve more customers across diverse industry segments, including small and medium business, large corporate, healthcare, education, and hospitality customers.”
“With the Steelcase portfolio of brands and as in-office work trends accelerate, we will be even better positioned to meet the evolving needs of the workplace, enhance dealer and customer relationships, unlock new opportunities for growth, and create compelling value for the combined company’s shareholders,” HNI CEO Jeffrey Lorenger said.
HNI shares, which entered the day little changed this year, sank nearly 15% soon after the opening bell. Steelcase stock moved into positive territory in 2025 with today’s sharp gains.
UPDATE—This article has been updated with the latest share price information.
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