Steelcase Inc. shares climbed to a new 52-week high of $17.13 in the latest trading session, fueled by mounting investor confidence that its proposed acquisition by competitor HNI Corporation will proceed as planned.
Strong Fundamentals and Upcoming Vote
The office furniture manufacturer recently reported robust first-quarter 2026 results, surpassing analyst expectations. The company posted earnings per share (EPS) of $0.20, significantly higher than the projected $0.14, while revenue reached $779 million compared to forecasts of $762.35 million. This strong operational performance has contributed to the stock’s impressive 52% gain over the past six months.
Investor attention now turns to the critical shareholder vote scheduled for October 9, 2025, where Steelcase investors will decide on the merger proposal. The transaction remains subject to regulatory approvals and requires consent from shareholders of both companies, with an expected completion date by year-end 2025.
Acquisition Terms and Market Reaction
Under the acquisition terms announced in August 2025, Steelcase shareholders are set to receive $7.20 in cash plus 0.2192 shares of HNI common stock for each share they own. This values the transaction at an implied price of $18.30 per Steelcase share.
Should investors sell immediately? Or is it worth buying Steelcase?
Market analysts have responded differently to these developments. Noble Capital downgraded Steelcase from “Outperform” to “Market Perform,” citing the stock’s approach toward the acquisition valuation. In contrast, Benchmark maintains its buy recommendation with a $16.00 price target, particularly in light of the company’s strong quarterly performance.
Strategic Rationale and Future Outlook
The merger would create a combined entity with pro forma annual revenue of approximately $5.8 billion. The unified company is expected to benefit from complementary brand portfolios and accelerated trends in office returns.
HNI Corporation has demonstrated its commitment to the transaction by expanding its credit facility by $425 million in September 2025 specifically to fund the acquisition, underscoring the strategic importance both companies place on the combination.
The next significant milestone arrives on September 17, 2025, when Steelcase releases its second-quarter 2026 results, providing further insight into the company’s operational performance ahead of the planned merger.
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