Steelcase stock skyrockets after $2.2 billion HNI buyout — what it means for investors

Time of India

04-08-2025

Steelcase HNI acquisition
:
Steelcase Inc shares surged more than 50% on Monday in premarket trading after the announcement that
HNI Corporation
will acquire the office furniture giant in a $2.2 billion deal, as per a report. The news sparked a sharp rally in Steelcase's stock price, and investors are now weighing the implications of the merger, according to InvestorsHub.
What Steelcase Shareholders Will Receive in the HNI Deal
Under the agreement,
Steelcase shareholders
will receive $7.20 in cash and 0.2192 shares of
HNI stock
for each share they own, as reported by InvestorsHub. With
HNI
stock closing at $50.62 last Friday, the offer values Steelcase shares at $18.30 each, a sizeable premium that explains the sharp rise in its stock, according to the report.
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Combined Revenue Expected to Reach $5.8 Billion
The merger positions the two companies to become a dominant force in the office furniture sector, as after the deal is completed, the combined firm is expected to generate about $5.8 billion in annual revenue and approximately $745 million in adjusted EBITDA, as per the InvestorsHub report.
Steelcase and HNI outline Plans For a Stronger Future
The deal is expected to close by the end of 2025 after the pending regulatory and shareholder approval of the both the companies, according to the report.
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Steelcase
president and CEO Sara Armbruster said, 'Joining with HNI is a bold step that marks the next era for Steelcase, our customers, dealers, and employees,' adding that, 'Together, we will be positioned to redefine what's possible in the world of work, workers, and workplaces,' as quoted in the InvestorsHub report.
HNI Chairman, President, and CEO Jeffrey Lorenger will lead the combined company, according to the report. Its headquarters will remain in Muscatine, Iowa, while Steelcase's operations and brand will continue in Grand Rapids, Michigan, as reported by InvestorsHub.
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What Investors Should Know About Steelcase-HNI Deal
The total consideration of $18.30 per share represents a premium over recent trading levels, giving investors a significant short-term return, as per the InvestorsHub report.
After the deal closes, HNI shareholders will own about 64% of the combined company, while Steelcase investors will hold the remaining 36%, according to the InvestorsHub report.
The acquisition values Steelcase at 5.8 times its trailing 12-month EBITDA and includes $120 million in projected annual cost savings, as per the report.
Management expects the deal to be accretive to non-GAAP earnings per share starting in 2027, according to InvestorsHub.
Some major Steelcase shareholders have already committed to supporting the deal, suggesting a smoother path to final approval, as per the report.
FAQs
Who will run the new combined company?
Jeffrey Lorenger, the current CEO of HNI, will lead the merged firm.
What's the ownership breakdown after the merger?
HNI shareholders will own 64%, and Steelcase shareholders will hold 36%.