Steelcase, HNI Shareholders Approve Merger, Deal Nears Finish Line
The transaction, creating a nearly $6 billion office furniture powerhouse, is now expected to close on December 10 after clearing its final major hurdle.
Steelcase Inc. (NYSE: SCS) and HNI Corporation (NYSE: HNI) have cleared the final significant obstacle in their plan to merge, as shareholders from both companies voted to approve HNI’s acquisition of Steelcase. The deal, which will create an industry heavyweight with combined revenues of approximately $5.8 billion, is now anticipated to close on December 10, 2025.
The successful shareholder votes, announced in a joint statement, effectively ends months of speculation and removes the primary risk factor that had faced the merger since its announcement in early August.
Shares of Steelcase were stable in afternoon trading, holding near $16.10. The stock’s current price reflects the market's high confidence in the deal's completion. Based on HNI’s recent trading price of around $40.69, the cash-and-stock offer values each Steelcase share at approximately $16.12, leaving a minimal arbitrage spread for investors.
Strategic Consolidation in a Changing Market
The merger combines two of the most prominent names in the commercial and office furniture sector, a market still adapting to post-pandemic hybrid work models. HNI, based in Iowa, and Michigan-based Steelcase aim to leverage their complementary brand portfolios and distribution networks to gain a competitive edge. The companies are targeting $120 million in annual cost synergies through operational efficiencies and supply chain optimization.
The transaction was first announced on August 4, 2025, with terms stipulating that Steelcase shareholders would receive $7.20 in cash and 0.2192 shares of HNI common stock for each share they own. The initial market reaction was starkly divided: Steelcase shares surged nearly 40% on the news, while HNI’s stock fell by 20% as its investors weighed the costs and integration risks of the large-scale acquisition.
A Look at the Combined Entity
The newly formed company will be a formidable competitor to industry leader MillerKnoll, boasting a diversified portfolio that serves everything from large corporate clients to small businesses and home offices. Steelcase, with a market capitalization of around $1.88 billion, brings a strong brand presence in ergonomic seating and architectural products. HNI, with a similar market cap of about $1.92 billion, is known for its leadership in hearth products and a robust lineup of office furniture brands like HON and Allsteel.
Financially, the acquisition is a move to consolidate market share and improve profitability. For the trailing twelve months, Steelcase reported revenues of $3.26 billion, while HNI posted revenues of $2.59 billion. Both companies have faced challenges, including negative year-over-year quarterly earnings growth, highlighting the pressures that likely drove them to combine forces.
Path to Closing
With shareholder approval secured, the companies will proceed with the final administrative and regulatory steps required to formally close the transaction. The December 10 closing date is aggressive but signals the desire of both management teams to begin the integration process swiftly.
For investors, the focus now shifts from deal uncertainty to execution. Wall Street will be closely watching for HNI’s integration plan, updates on achieving the projected $120 million in synergies, and the strategic vision for the combined company as it navigates the future of the modern workplace.