In a major consolidation move within the office furniture industry, Steelcase Inc., a mainstay of Grand Rapids since 1912, has agreed to be acquired by HNI Corporation in a transaction valued at around $2.2 billion, this landmark deal, announced Monday, promises to reshape the landscape for workplace furnishings as the two giants merge their considerable resources, expertise, and market presence, according to WOODTV.
Under the terms of the agreement, which encompasses both cash and stock, Steelcase shareholders will get $7.20 in cash and 0.2192 shares of HNI stock for each share owned, resulting in a post-merger landscape where HNI shareholders will hold about 64% of the combined company, and Steelcase shareholders approximately 36%, affirming statements obtained by both WZZM13 and as mentioned in MLive.
Sara Armbruster, President and CEO of Steelcase, noted the merger as the "next era for customers, dealers and employees" and emphasized the combined capabilities in redefining the work environment, as she told WZZM13. Jeffrey Lorenger, Chairman of HNI, will maintain his leadership role in the merged entity, which will have a board expanded to 12 directors, including two from Steelcase's current independent board members, in a bid to ensure continuity and an insightful transition for the new organization's governance.
The two companies have long established their distinct marks on the industry, with Steelcase having a history of innovation and design, including collaboration with noted architect Frank Lloyd Wright, as reported by MLive, despite the acquisition, HNI has made it clear that they respect Steelcase's legacy and intend to maintain its brand post-acquisition, a decision that sits well with the design heritage of Steelcase and its historical significance to Grand Rapids, as well as to its global customer base.
