HNI, a company that makes workplace furnishings and residential building products, has agreed to buy office furniture maker Steelcase in a cash-and-stock deal worth about $2.2 billion. The acquisition is part of HNI’s strategy to capitalize on the trend of more companies asking employees to return to offices.
Steelcase shares rose 65%, while HNI’s fell 7% after the announcement. Under the terms of the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share they own, valuing Steelcase at about $18.30 per share.
The acquisition comes at a time when demand for in-office accessories and infrastructure is increasing due to the shift back to in-office work. Steelcase has dealers and retailers in over 790 locations across the Americas, EMEA, and Asia Pacific. The company’s annual revenue was $3.2 billion in 2024, with net income of $81.1 million.
HNI expects the combined business to have pro forma annual revenue of about $5.8 billion. Upon the deal’s closing, expected by the end of 2025, HNI shareholders will own approximately 64% of the combined company, while Steelcase shareholders will own the rest.
The merger is expected to generate $120 million in annual synergies, with the two firms’ complementary geographic footprints and dealer networks allowing them to serve a wide range of customers. J.P. Morgan Securities is serving as exclusive financial adviser to HNI, while Goldman Sachs & Co and BofA Securities are serving as financial advisers to Steelcase.
Source: https://www.reuters.com/legal/transactional/hni-bets-return-to-office-with-22-billion-deal-furniture-maker-steelcase-2025-08-04