Steelcase Inc., an international manufacturer of furniture has decided to sell its business to a rival company called HNI Corporation.
Both the companies officially announced the decision on Monday, August 4 and said that HNI will buy Steelcase through a confirmed deal involving both cash and company shares worth $2.2 billion.
As per the reports, after the merger is finished, the people who own shares in HNI will control about 64% of the new combined company while those who own shares in Steelcase will control about 36%.
Steelcase’s CEO, Sara Armbruster, said in a statement, noting, “Together, we will be positioned to redefine what’s possible in the world of work, workers, and workplaces."
She added, "Like Steelcase, HNI is an organization that leads with purpose, shares similar values, and puts the customer at the center of everything they do. I’m excited to see this combination shape our industry."
When the merger is complete, HNI's current leader Jeffrey Lorenger will become the head of the new combines company.
Beside this, HNI will keep its main office in Muscatine, Lowa while Steelcase will continue to have its main office in Grand Rapids, Michigan.
In addition to this, HNI will continue using the Steelcase name as part of the new combined company and it will add two more members to its board of director, increasing it from 10 to 12 members who will come from Steelcase's current board.
