Steelcase’s $2 billion sale shows the return-to-office movement is still growing

Furniture maker Steelcase is being acquired by HNI Corporation in a $2.2 billion deal that shows the upside to office furniture at a time when return-to-office remains on the rise.

HNI Corporation, which manufactures workplace furnishings and residential building products like fireplaces, announced the acquisition with Steelcase Monday. The companies cited their complementary geographic footprints, dealer networks, and skill sets as the deal’s benefits and said they estimate an annual revenue of about $5.8 billion should shareholders agree and the transaction close by the end of 2025.

“This is a historic moment for Steelcase as we embark on the first step of a transformative combination that will unlock new possibilities for our customers, dealers, and employees alike,” Steelcase president and CEO Sara Armbruster wrote in a letter to employees obtained by Fast Company. “Together, we will be positioned to redefine what’s possible in the world of work, workers, and workplaces.”

Armbruster said Steelcase would maintain its Grand Rapids, Michigan, headquarters and continue to operate as Steelcase with its brand and business strategy following the close of the deal, but that HNI chairman, president, and CEO Jeffrey Lorenger would lead the combined company.

RTO growth

Steelcase has rebounded from pandemic lockdowns with 12 consecutive quarters of year-over-year gross margin growth, including 7.11% year-over-year growth in the most recent quarter for a reported $779 million in quarterly revenue, according to PitchBook data.

As firms instituted return-to-office (RTO) policies in the years since lockdowns, Steelcase’s office chairs, work stations, lockers, and phone booths have been in high demand. As recently as last year, RTO was still picking up steam, and fast. The percentage of employees who work “mostly in person” rose from 34% to 68% between 2023 to 2024, while the share of employees who work “mostly remote” has dropped from 44% to 17% in the same time period, according to McKinsey & Company.

Steelcase, which did not respond to a request for comment, reported strong order growth from financial services companies and large technology companies on its most recent earnings call. Armbruster noted on the call healthcare was an area of growth and said Steelcase’s work in the education space was “well-positioned” but threatened by federal policy targeting education.