GRAND RAPIDS, MI — Grand Rapids’ biggest office furniture manufacturer is being acquired by another company in the same market.
HNI Corporation and Steelcase Inc. on Monday, Aug. 4, announced that they have entered into a definitive agreement for HNI to acquire Steelcase in a cash and stock transaction, with a total consideration of approximately $2.2 billion to Steelcase common shareholders.
With the acquisition, HNI expects to expand its offerings in the industries of health care, education and hospitality, and for the combined company to generate $5.8 billion in annual net sales after closing.
The transaction, expected to close by the end of 2025, will result in HNI shareholders owning approximately 64% of the combined company. Steelcase shareholders will own the remaining 36%.
“Joining with HNI is a bold step that marks the next era for Steelcase, our customers, dealers, and employees,” Sara Armbruster, president and CEO of Steelcase, said in a statement. “Together, we will be positioned to redefine what’s possible in the world of work, workers and workplaces. Like Steelcase, HNI is an organization that leads with purpose, shares similar values, and puts the customer at the center of everything they do. I’m excited to see this combination shape our industry.
Following the close of the transaction, the combined company will be led by Jeffrey Lorenger, chair, president and CEO of HNI. HNI will continue to operate its corporate headquarters in Muscatine, Iowa, and Steelcase will maintain its headquarters in Grand Rapids.
“This acquisition brings together two respected companies with complementary strengths and represents an exciting milestone in HNI’s growth journey,” Lorenger said in a statement. “We have long admired Steelcase for its insight-led approach, which has helped shape our industry for decades. 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 will maintain the Steelcase brand following the transaction’s close.
Additionally, HNI’s board of directors will expand from 10 directors to 12, to include two of Steelcase’s current independent board members.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
Source link
