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Time of India
7 days ago
- Business
- Time of India
Building products maker HNI to acquire Steelcase for $2.2 billion
BENGALURU: HNI agreed to buy office furniture maker Steelcase in a cash-and-stock deal worth about $2.2 billion, it said on Monday, as it looks to capitalize on more companies asking employees to return to office. Shares of Steelcase rose 65%, while HNI's fell 7%. Steelcase shareholders will get $7.20 in cash and 0.2192 shares of HNI common stock for each share they own, under terms of the agreement. This values Steelcase at about $18.30 per share, representing a premium of nearly 80% to Friday's close, according to Reuters calculations. The Muscatine, Iowa-based HNI makes workplace furnishings and residential building products. Its acquisition of Steelcase comes at a time when "in-office work trends accelerate," CEO Jeffrey Lorenger said. After the pandemic-era work-from-home policies, more companies have been asking their employees to return to their offices to work, buoying demand for in-office accessories and infrastructure. Steelcase has dealers and retailers in 790 locations across the Americas, EMEA and Asia Pacific. While rising corporate customer demand in its Americas segment sustains sales, demand in its international business has slowed over the last few quarters due to macroeconomic challenges especially from France and Germany markets. In 2024, the Grand Rapids, Michigan-based Steelcase recorded annual revenue of $3.2 billion and net income of $81.1 million. It stands to benefit from the merger's expected annual run-rate synergies of $120 million. The two firms' complementary geographic footprints and dealer networks will allow the combined company to serve small- and medium-sized businesses, larger corporates, healthcare and education end markets, HNI said. HNI expects pro forma annual revenue of the combined business at about $5.8 billion. Upon the deal's closing, expected by the end of 2025, HNI shareholders will own about 64% of the combined company and Steelcase shareholders will own the rest. J.P. Morgan Securities is serving as exclusive financial adviser to HNI. Goldman Sachs & Co and BofA Securities are serving as financial advisers to Steelcase.
Economic Times
04-08-2025
- Business
- Economic Times
Steelcase is selling the business to its arch rival HNI in $2.2 billion acquisition deal. Here's why
TIL Creatives Steelcase and HNI, two of the largest workplace furniture companies announced they're merging Building products maker HNI has agreed to buy peer Steelcase in a cash and stock transaction worth about $2.2 billion, the company said on Monday. Steelcase's shares were up almost 40%, and HNI's were down 20% on low volumes in premarket trading, reported Reuters. HNI Corporation and Steelcase Inc. on Monday, August 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. The Muscatine, Iowa-based HNI makes workplace furnishings and residential building products. Its acquisition of Steelcase comes at a time when "in-office work trends accelerate," HNI's CEO Jeffrey Lorenger said. ALSO READ: Social security to get huge August update for millions of Americans? SSA provides key update Steelcase and HNI, two of the largest workplace furniture companies announced they're merging. Steelcase Inc, founded in 1912 in Grand Rapids, announced it is selling the business to one of its competitors, HNI Corporation. Steelcase Inc. is a global leader in office furniture, interior architecture and space solutions for offices, hospitals and classrooms. 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 the pandemic-era work-from-home policies, more companies have been asking their employees to return to their offices to work, buoying demand for in-office accessories and infrastructure. ALSO READ: Tropical storm Dexter forms in the Atlantic, National Hurricane Center gives major update on landfall in US HNI stated that the geographic reach and dealer networks of both companies are highly complementary, enabling the combined entity to better serve a broad range of clients — from small and mid-sized businesses to large corporations, as well as key sectors such as healthcare and merged company is expected to generate approximately $5.8 billion in pro forma annual revenue, with projected annual run-rate synergies of $120 million. Steelcase, headquartered in Grand Rapids, Michigan, operates through a network of dealers and retailers across 790 locations spanning the Americas, EMEA, and Asia Pacific. In 2024, the company reported $3.2 billion in annual revenue and $81.1 million in net income. ALSO READ: Emergency air quality alert in New York as Canadian wildfire crisis escalates. Here's how you can track and what you should doFollowing the anticipated close of the transaction by the end of 2025, HNI shareholders will own roughly 64% of the combined organization, while Steelcase shareholders will hold the remaining 36%. J.P. Morgan Securities is acting as exclusive financial adviser to HNI. Steelcase is being advised by Goldman Sachs & Co. and BofA Securities. (With inputs from Reuters)
Mint
04-08-2025
- Business
- Mint
HNI Corp to buy office furniture maker Steelcase for $2.2 billion; bets on return-to-office move of companies
HNI has agreed to buy office furniture maker Steelcase in a deal worth about $2.2 billion, it said on Monday, as it looks to capitalize on more companies asking employees to return to office. HNI's shares fell 25% and Steelcase's rose 45% in premarket trading. Steelcase's shareholders will get $7.20 in cash and 0.2192 shares of HNI common stock for each share they own. This values Steelcase at about $18.30 per share, representing a premium of nearly 80% to Friday's close, according to Reuters calculations. The Muscatine, Iowa-based HNI makes workplace furnishings and residential building products. Its acquisition of Steelcase comes at a time when "in-office work trends accelerate," HNI's CEO Jeffrey Lorenger said. After the pandemic-era work-from-home policies, more companies have been asking their employees to return to their offices to work, buoying demand for in-office accessories and infrastructure. The two firms' geographic footprints and dealer networks are complementary, which will allow the combined company to serve small- and medium-sized businesses and larger corporates, and the healthcare and education end markets, HNI said. HNI expects pro forma annual revenue of the combined business at about $5.8 billion and annual run-rate synergies of $120 million. The Grand Rapids, Michigan-based Steelcase has dealers and retailers in 790 locations across the Americas, EMEA and Asia Pacific. In 2024, it recorded annual revenue of $3.2 billion and net income of $81.1 million. Upon the transaction's closing, expected by the end of 2025, HNI shareholders will own about 64% of the combined company and Steelcase shareholders will own the rest. J.P. Morgan Securities is serving as exclusive financial adviser to HNI. Goldman Sachs & Co and BofA Securities are serving as financial advisers to Steelcase. (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sahal Muhammed)
Reuters
04-08-2025
- Business
- Reuters
HNI bets on return-to-office with $2.2 billion deal for furniture maker Steelcase
Aug 4 (Reuters) - HNI (HNI.N), opens new tab has agreed to buy office furniture maker Steelcase (SCS.N), opens new tab in a deal worth about $2.2 billion, it said on Monday, as it looks to capitalize on more companies asking employees to return to office. HNI's shares fell 25% and Steelcase's rose 45% in premarket trading. Steelcase's shareholders will get $7.20 in cash and 0.2192 shares of HNI common stock for each share they own. This values Steelcase at about $18.30 per share, representing a premium of nearly 80% to Friday's close, according to Reuters calculations. The Muscatine, Iowa-based HNI makes workplace furnishings and residential building products. Its acquisition of Steelcase comes at a time when "in-office work trends accelerate," HNI's CEO Jeffrey Lorenger said. After the pandemic-era work-from-home policies, more companies have been asking their employees to return to their offices to work, buoying demand for in-office accessories and infrastructure. The two firms' geographic footprints and dealer networks are complementary, which will allow the combined company to serve small- and medium-sized businesses and larger corporates, and the healthcare and education end markets, HNI said. HNI expects pro forma annual revenue of the combined business at about $5.8 billion and annual run-rate synergies of $120 million. The Grand Rapids, Michigan-based Steelcase has dealers and retailers in 790 locations across the Americas, EMEA and Asia Pacific. In 2024, it recorded annual revenue of $3.2 billion and net income of $81.1 million. Upon the transaction's closing, expected by the end of 2025, HNI shareholders will own about 64% of the combined company and Steelcase shareholders will own the rest. J.P. Morgan Securities is serving as exclusive financial adviser to HNI. Goldman Sachs & Co and BofA Securities are serving as financial advisers to Steelcase.
Yahoo
04-08-2025
- Business
- Yahoo
Steelcase Stock Skyrockets as Office Furniture Company Agrees to Sale
Shares of Steelcase (SCS) soared more than 45% in premarket trading Monday after the office furniture maker agreed to be acquired by HNI Corporation (HNI) for $2.2 billion in cash and stock. Shareholders of Grand Rapids, Mich.-based Steelcase would receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they own, with an implied purchase price of $18.30 based on HNI's closing share price of $50.62 Friday. That would represent a nearly 80% premium to Steelcase's closing level of $10.18 Friday. The transaction is expected to close by the end of the calendar year, the companies said. Upon closing, HNI shareholders would own about 64% and Steelcase shareholders roughly 36% of the combined firm. Muscatine, Iowa-based HNI also makes workplace furnishings, as well as residential building products. The firms said their "geographic footprints and dealer networks are highly complementary, which bolsters the combined company's ability to serve more customers across diverse industry segments, including small and medium business, large corporate, healthcare, education, and hospitality customers." "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 CEO Jeffrey Lorenger said. HNI shares, which entered the day little changed this year, sank nearly 20% before the bell and were flat for the year. Steelcase stock entered Monday down 14% in 2025. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
