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From Home Furnishing Business
HNI Agrees to Buy Office Furniture Maker Steelcase
August 4,
2025 by Karen Parrish in Business Strategy, Industry 
HNI agreed to buy office furniture maker Steelcase in a cash-and-stock deal worth about $2.2 billion as it looks to capitalize on more companies asking employees to return to office.
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.