HNI to Acquire Steelcase in $2.2 Billion Deal

HNI Corporation, a prominent name in workplace furnishings, has entered into a definitive agreement to acquire Steelcase, a century-old leader in office furniture, for a staggering $2.2 billion in a cash and stock transaction. The announcement, made on August 4, 2025, represents one of the most significant consolidations in the office furniture industry, with both companies poised to benefit from complementary strengths and expanded market reach.

The Terms of the Deal

The acquisition agreement stipulates that Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they own. Based on HNI’s closing share price of $50.62 as of August 1, 2025, this translates to an implied purchase price of $18.30 per Steelcase share—an impressive 80% premium over Steelcase’s closing price of $10.18 prior to the announcement. The deal is expected to close by the end of 2025, subject to shareholder approvals and regulatory clearances.

Upon completion, HNI shareholders will own approximately 64% of the combined company, while Steelcase shareholders will hold around 36%. The combined company will retain HNI’s corporate headquarters in Muscatine, Iowa, while Steelcase will maintain its headquarters in Grand Rapids, Michigan.

Strategic Advantages and Synergies

The merger brings together two well-established players in the office furniture market with complementary product portfolios and dealer networks. This alignment is expected to enhance customer reach across multiple industry segments, including healthcare, education, hospitality, and corporate offices. According to Furniture Today, the combined company will have a pro forma annual revenue of approximately $5.8 billion and adjusted EBITDA of $745 million, highlighting the financial robustness of the merged entity.

Jeffrey Lorenger, Chairman and CEO of HNI, expressed enthusiasm about the merger, stating, “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.”

Steelcase CEO Sara Armbruster echoed these sentiments, emphasizing that the merger represents a new era for the company and its stakeholders. “Together, we will be positioned to redefine what’s possible in the world of work, workers, and workplaces,” she said, as reported by WZZM13.

Financial and Operational Impact

The deal is expected to deliver $120 million in annual run-rate synergies once fully realized, with a focus on operational enhancements, digital transformation, and customer-centric innovations. HNI plans to maintain the Steelcase brand, which has been a cornerstone of the office furniture industry since its founding in 1912. The combined company also plans to expand HNI’s board of directors from 10 to 12 members, incorporating two independent board members from Steelcase.

In terms of financing, JPMorgan Chase and Wells Fargo have committed to supporting the transaction, ensuring smooth financial operations during the transition. Additionally, the merger aligns with HNI’s long-term strategic framework, aimed at driving profitable growth and strengthening its market position.

Industry Context and Future Outlook

This acquisition comes at a pivotal time for the office furniture industry, as businesses adapt to evolving workplace trends, including the gradual return to in-office work post-pandemic. Both HNI and Steelcase have demonstrated resilience and adaptability, with HNI completing another major acquisition—Kimball International—just two years prior in 2023.

The combined entity is expected to be a powerhouse in the industry, capable of catering to diverse customer needs and setting new standards in innovation and operational excellence. As Investopedia notes, the merger is not just a financial transaction but a strategic move to shape the future of workplace solutions globally.

This deal represents a transformative moment for both HNI and Steelcase, signaling a new chapter of growth, innovation, and industry leadership in the evolving world of work.