MUSCATINE, Iowa, GRAND RAPIDS, Mich. — Two iconic and long-time competitors in the contract furniture space are joining forces in a major acquisition. HNI Corporation and Steelcase Inc. have entered into a definitive agreement under which HNI will acquire Steelcase in a cash and stock transaction, with a total value of approximately $2.2 billion to Steelcase common shareholders.

The transaction, which is expected to close by the end of calendar year 2025, is subject to approval by HNI and Steelcase shareholders, and other customary closing conditions. Upon closing, HNI shareholders will own approximately 64% of the combined company, and Steelcase shareholders will own approximately 36%.

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 of Steelcase they own. The implied per share purchase price of $18.30 is based on HNI’s closing share price of $50.62 on Friday, August 1, 2025, reflecting a valuation multiple at transaction close for Steelcase of approximately 5.8x TTM (most recent, consecutive twelve months) adjusted EBITDA, inclusive of run-rate cost synergies of $120 million. 

According to the filing, the deal of two of the largest North American furniture manufacturers will have a pro forma annual revenue of approximately $5.8 billion. According to the most recent FDMC 300 ranking of top North American wood products manufacturers, HNI ranks #11 on the listing with annual sales of approximately $1.9 billion. It employs 7,700 workers at its HNI and Kimball International plants in the U.S. and around the world. Steelcase ranks #4 on the list with approximately $2.2 billion in sales and employs 11,300 people at 22 manufacturing and distribution facilities in the U.S. and Mexico.

“This acquisition brings together two respected companies with complementary strengths and represents an exciting milestone in HNI’s growth journey,” said Jeffrey Lorenger, HNI’s chairman, president, and chief executive officer. “We have long admired Steelcase for its insight-led approach, which has helped shape our industry for decades. 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.”

Sara Armbruster, president and CEO of Steelcase, called this a "bold step" that marks the next era for Steelcase, its customers, dealers, and employees. "Together," she said, "we will be positioned to redefine what’s possible in the world of work, workers, and workplaces. Like Steelcase, HNI is an organization that leads with purpose, shares similar values, and puts the customer at the center of everything they do. I’m excited to see this combination shape our industry.”

Following the close of the transaction, the combined company will be led by Lorenger. HNI will continue to operate its corporate headquarters in Muscatine, Iowa, and Steelcase will maintain its headquarters in Grand Rapids, Michigan. HNI will maintain the Steelcase brand following the transaction’s close. In addition, post-closing, HNI’s Board of Directors will expand from 10 directors to 12, to include two of Steelcase’s current independent board members.

The two companies say that the combined portfolios and dealer networks will enhance customer reach. "HNI’s and Steelcase’s 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 businesses, large corporate, healthcare, education, and hospitality customers. The companies have the industry’s most respected and widely recognized brands, allowing the combined company to better support an expanded customer base and capture growth opportunities from industry tailwinds."