HNI Corporation is set to acquire Steelcase Inc. in a deal valued at approximately $2.2 billion, aiming to enhance market position and synergize operations.

Target Company Overview

HNI Corporation (NYSE: HNI) has announced its intention to acquire Steelcase Inc. (NYSE: SCS) in a cash and stock transaction valued at approximately $2.2 billion. Under the terms of the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock per Steelcase share, resulting in an implied purchase price of $18.30 per share based on HNI’s recent closing price. The acquisition is expected to lead to combined pro forma annual revenues of around $5.8 billion and an Adjusted EBITDA of approximately $745 million.

The merger is particularly notable for the complementary nature of HNI and Steelcase’s brand portfolios and dealer networks. Together, they aim to enhance their customer reach across various sectors such as healthcare, education, and corporate environments, thereby enabling the combined entity to better meet the diverse needs of their client base.

Industry Overview

The office furniture industry is currently in a transformative phase, driven by evolving workplace dynamics and increasing demand for flexible work environments. The growing trend towards remote work has brought about significant cha