Steelcase Inc., the century‑old office furniture maker headquartered in Grand Rapids, has signed a definitive agreement to be acquired by HNI Corporation in a cash‑and‑stock transaction valued at approximately $2.2 billion Steelcase+15Steelcase+15Reddit+15.
Under the terms of the deal, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock per Steelcase share—an implied stock price of about $18.30, representing nearly an 80% premium over Steelcase’s closing price of $10.18 from Friday, August 1 Business Wire+5Reuters+5Investopedia+5.
Ownership post‑merger would be split roughly 64% to HNI shareholders and 36% to Steelcase shareholders, with the transaction expected to close by the end of 2025, pending regulatory and shareholder approvals ReutersFurniture Today.
Why It Matters
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Compelling valuation for investors: Steelcase shares surged between 40% and 50% in pre‑market trading on Monday, reflecting investor enthusiasm over the premium deal Investopedia+11Reuters+11Bangla news+11.
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Strategic fit: HNI, based in Muscatine, Iowa, and Steelcase bring complementary dealer networks and geographic reach, enabling the combined company—a projected $5.8 billion in annual revenue entity—to better serve small and mid‑size businesses, healthcare, education, corporate clients, and hospitality markets Steelcase+9Reuters+9Furniture Today+9.
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Financial upside: The combined firm expects annual synergies of $120 million and aims to deliver earnings accretion starting in 2027, with debt levels targeted to normalize within 18–24 months Reuters+2Furniture Today+2Nasdaq+2.
What’s Next
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With both companies continuing under separate headquarters, Steelcase will remain based in Grand Rapids and retain its brand post‑merger, while HNI’s board will expand to include two independent Steelcase members Investopedia+7Furniture Today+7Reddit+7.
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Leadership continuity: Jeffrey Lorenger, HNI’s CEO, will lead the combined entity. Steelcase CEO Sara Armbruster stated the merger marks a “first step of a transformative combination” to unlock new growth opportunities and innovation Furniture Today+3Reddit+3Nasdaq+3.
In today’s letter to staff, Armbruster emphasized the company’s longstanding purpose-driven identity—founded in 1912 by Peter M. Wege—calling the acquisition “a historic moment” that positions Steelcase for its next era Crain’s Detroit Business+2Reddit+2en.wikipedia.org+2.
What It Means for West Michigan
Steelcase has been a pillar of the West Michigan business community for over a century. This sale marks a major transition—one that could reshape regional employment, innovation, and economic identity. While the brand remains, new ownership may eventually bring shifts in operations, investment, and workplace strategy.
For MoodyOnTheMarket readers, the key questions to watch include:
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How will integration impact jobs at the Grand Rapids HQ and dealer network?
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What will changes—or continuity—in corporate policy mean for local suppliers and Grand Rapids area community commitments?
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Can this combination maintain Steelcase’s innovation legacy while benefiting from HNI’s scale?
