A US office furniture specialist and Steelcase Inc. announced that they have entered into a definitive agreement under which HNI will acquire Steelcase for approximately USD 2.2 billion.
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The company, HNI's, chairman, president and CEO Jeffrey Lorenger stated that the deal unites "two renowned companies with complementary strengths" and positions the group to better meet evolving workplace demands, enhance dealer and customer relationships, and unlock new growth opportunities. Steelcase president and CEO Sara Armbruster called the merger 'a bold step' ushering in 'a new era' for customers, dealers and employees.
The companies will combine product portfolios and dealer networks, with their geographic presence described as "highly complementary". The merged entity will have an estimated annual revenue of USD 5.8 billion, a pro forma adjusted EBITDA of USD 745 million and a net debt-to-EBITDA ratio of 2.1. Annual cost synergies are projected at USD 120 million once fully implemented.
The transaction is expected to create a stronger market position and expand the customer base across multiple industry segments.
Source: www.moebelfertigung.com
