Following the release of purchase news, Steelcase Inc. (NYSE: SCS) saw a dramatic increase in share price on Monday, closing at $16.58, up 62.87%. The company’s announcement of a final deal with HNI Corporation for an acquisition of around $2.2 billion preceded the rise.
Terms of Acquisition and Effect on Shareholders
As per the deal, each Steelcase shareholder would get 0.2192 shares of HNI common stock in addition to $7.20 in cash. The assumed acquisition price of $18.30 per Steelcase share is based on HNI’s closing price of $50.62 on August 1, 2025.
The value includes $120 million in run-rate cost savings and is about 5.8 times trailing twelve-month Adjusted EBITDA. After the merger is complete, Steelcase stockholders would own about 36% of the combined business, while HNI shareholders will possess around 64%.
Advantages of Strategy and Positioning in the Market
The merger brings together two well-known companies with diverse brand portfolios and complementary strengths. The combined firm hopes to meet changing workplace expectations, improve dealer and client relationships, and seize growth possibilities driven by the return of in-office work by combining Steelcase’s innovative product range with HNI’s operational scalability.
Pro forma yearly revenue for the merged company would be around $5.8 billion, adjusted EBITDA will be approximately $745 million, and net leverage will be 2.1x. It is anticipated that net leverage would reach its pre-acquisition levels in 18 to 24 months.
Long-Term Vision, Integration, and Leadership
Following the merger, Steelcase will keep its base in Grand Rapids, Michigan, and HNI will continue to run its headquarters in Muscatine, Iowa. The merged company will be led by Jeffrey Lorenger, the Chairman, President, and Chief Executive Officer of HNI. In addition to adding two independent directors from Steelcase, HNI’s Board will grow from 10 to 12 members while maintaining the Steelcase brand.
Both businesses restated their dedication to community involvement, sustainability, people, and operational excellence. Delivering cutting-edge workplace solutions, expanding its clientele across industries including business, healthcare, education, and hospitality, and generating long-term value for stakeholders are the goals of the reformed firm.
