HNI Corp to acquire Steelcase in $2.2 billion deal

HNI Corporation, whose brands include HON and Allsteel, has agreed to acquire Steelcase in a cash and stock transaction valued at approximately $2.2 billion, according to a report from Rob Kirkbride of office insight. The deal brings together two of the US office furniture sector’s largest players and will create a combined company with annual revenue of around $5.8 billion. Under the terms of the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each Steelcase share they hold. Based on HNI’s closing price of $50.62 on August 1, 2025, the deal implies a purchase price of $18.30 per share for Steelcase. Once the acquisition is completed, HNI shareholders will hold 64 percent of the merged entity, with Steelcase shareholders owning the remaining 36 percent.

Jeffrey Lorenger, HNI’s Chairman, President and Chief Executive Officer, will lead the combined company. “This acquisition brings together two respected companies with complementary strengths,” he said. “With Steelcase’s brands and insight-led approach, we are better positioned to support the evolving workplace, strengthen dealer and customer relationships, and drive long-term value.”

Steelcase President and CEO Sara Armbruster described the move as a bold step forward. “Together, we are positioned to redefine what’s possible in the world of work,” she said. “HNI shares our values and customer focus, and I’m excited to see what we can accomplish as one company.”

The acquisition will unite both firms’ extensive dealer networks and portfolios, enabling broader customer reach across sectors including corporate, education, healthcare, and hospitality. Operational efficiencies are expected to deliver annual cost synergies of $120 million, with full run-rate synergies built into projections. HNI expects the deal to be accretive to earnings beginning in 2027.

The combined company will maintain HNI’s headquarters in Muscatine, Iowa, and retain Steelcase’s presence in Grand Rapids, Michigan. The Steelcase brand will remain intact, and two independent Steelcase board members will join the expanded HNI board.

The merger underscores a shift in the office furniture landscape as manufacturers respond to changing patterns in workplace demand, particularly the return to physical offices. HNI and Steelcase both highlight a shared commitment to sustainability, community engagement, and employee opportunity as core drivers of the combined firm’s future direction.