Steelcase Stock Surged 64% On Monday After This $2.2B Acquisition: Here’s The Fineprint

Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI stock for each share they own.

HNI Corp. (HNI) has announced a definitive agreement to acquire workplace furnishings products designer and manufacturer, Steelcase Inc. (SCS), in a transaction valued at approximately $2.2 billion. 

The deal, unveiled Monday, will see Steelcase shareholders receive $7.20 in cash and 0.2192 shares of HNI stock for each share they own. Based on HNI’s August 1 closing share price of $50.62, this values each Steelcase share at $18.30.

Following the announcement, Steelcase stock jumped over 64% on Monday morning, reaching a five-year high. HNI stock dropped over 9%.

On Stocktwits, retail sentiment around Steelcase jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘normal’ levels in 24 hours.

With Steelcase and HNI having minimal overlap in their dealer footprints, the combined organization is poised to broaden its reach across sectors, including healthcare, education, corporate offices, and hospitality. 

Their enhanced product lines and established brands are expected to serve a wider customer base better and capitalize on shifting workplace dynamics. HNI specializes in workplace furnishings and residential building products.

The merged company is projected to generate around $5.8 billion in annual revenue and approximately $745 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), including an estimated $120 million in cost savings once fully realized. 

Once the acquisition closes, HNI CEO Jeffrey Lorenger will lead the combined entity, which will retain HNI’s Muscatine, Iowa, headquarters while maintaining Steelcase’s base in Grand Rapids, Michigan. The newly merged board will include two current Steelcase independent directors, expanding to 12 members. The companies anticipate finalizing the transaction by the end of 2025.

Steelcase stock has gained over 41% year-to-date and 31% in the last 12 months.

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