News Summary
HNI Corporation has reached a definitive agreement to acquire Steelcase Inc. in a $2.2 billion transaction. This significant merger aims to consolidate two major players in the office furniture industry, enhancing capabilities in healthcare, education, and hospitality sectors. Steelcase shareholders will receive cash and stock as part of the deal, expected to close by the end of 2025, pending approvals. HNI plans to maintain Steelcase’s brand and operations while creating new opportunities for employees across both companies.
Grand Rapids, Michigan — HNI Corporation has announced a definitive agreement to acquire Steelcase Inc. in a cash and stock transaction valued at approximately $2.2 billion. This acquisition signifies a major consolidation in the office furniture industry, combining two prominent players in the market. Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share owned, translating to an implied purchase price of $18.30 per share based on HNI’s share price of $50.62 as of August 1, 2025.
The deal is expected to close by the end of 2025, contingent upon receiving necessary shareholder and regulatory approvals. Upon completion, HNI shareholders will hold about 64% of the newly formed company, while Steelcase shareholders will own approximately 36%. This merger will enable HNI to generate anticipated annual net sales of $5.8 billion, bolstering both companies’ capabilities in key sectors such as health care, education, and hospitality.
Leadership of the combined entity will be under the guidance of Jeffrey Lorenger, currently the chair, president, and CEO of HNI Corporation. HNI plans to maintain the Steelcase brand and retain its headquarters in Grand Rapids, while continuing operations from its existing headquarters in Muscatine, Iowa. Until the acquisition is finalized, both companies will continue to operate independently.
Impact on Employment and Operations
Steelcase currently employs around 11,300 individuals globally, with about 3,500 working in West Michigan. HNI, following the acquisition, anticipates the combination of resources and talents will lead to new career opportunities for employees across both organizations. A joint integration planning team will be established to facilitate a smooth transition and optimize the merger process.
This acquisition follows HNI’s recent completion of a $485 million purchase of Kimball International, illustrating its strategy for growth and expansion within the office furniture sector. The merger is expected to enhance dealer and customer relationships, strengthening both companies’ market position.
Financial Context
In terms of financial performance, Steelcase reported a revenue of $3.16 billion for its most recent fiscal year, which ended in February. HNI’s reported net sales for fiscal year 2024 reached $2.5 billion, with $1.9 billion derived from its workplace furnishings segment. The complementary strengths of both companies in the office furniture landscape are anticipated to unlock significant growth potential going forward.
Historical Significance of Steelcase
Steelcase has a storied history, having been founded in 1912 and once recognized as Grand Rapids’ largest employer. The merger with HNI Corporation represents a transformative step that could redefine industry standards and practices for modern workplaces.
In conclusion, the planned acquisition of Steelcase by HNI Corporation marks a significant milestone in the evolution of the office furniture industry, with both companies poised to reap the benefits of enhanced operational capabilities and market reach. This strategic move aims to solidify their positions in a competitive marketplace while focusing on expanding service offerings and providing innovative solutions for customers.
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Additional Resources
- WZZM 13 News
- Wikipedia: Steelcase
- Business Wire
- Google Search: HNI Corporation Steelcase acquisition
- MLive
- Encyclopedia Britannica: Office Furniture
- Fox 17 News
- Google News: Steelcase HNI acquisition
- Crain’s Grand Rapids
- Google Scholar: Steelcase HNI Corporation
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
