There are only a handful of publicly traded companies in the region, so when one of them makes a strategic acquisition, we take notice.
Muscatine-based HNI Corporation announced earlier this month that it is acquiring Grand Rapids, Michigan-based Steelcase Inc. in a $2.2 billion deal that will merge two of the largest workplace furniture manufacturers and competitors.
“The move goes beyond the hype of a headline: It’s effectively a coronation of a King. HNI‘s absorption of Steelcase is a once-in-a-lifetime acquisition that feels akin to Pepsi acquiring Coke,” according to an article in 3rings, a curated editorial platform dedicated to showcasing remarkable products for architects, interior designers, and design enthusiasts. “Granted, that’s a strained metaphor, but hopefully the point is well made: HNI acquiring Steelcase represents a major reshuffling of industry power.”
Under the agreement, Steelcase will sell its business to HNI and the combined company will continue to be led by HNI Chairman, President and CEO Jeffrey Lorenger. Both HNI and Steelcase will retain their respective headquarters in Muscatine and Grand Rapids.
According to the companies, HNI will acquire Steelcase in a cash and stock transaction totaling $2.2 billion, more than doubling the size of HNI.
This marks HNI’s second major acquisition in three years since its purchase of Kimball International in 2023.
We much prefer to see a locally headquartered business, especially a publicly traded one, acquire another company rather than be acquired.
We congratulate HNI on this strategic purchase and expect the growth will benefit not only Muscatine, but also the Quad Cities and the Cedar Rapids–Iowa City Corridor.
HNI’s gift
We were thrilled to see that the HNI Charitable Foundation has pledged $1 million to the University of Iowa’s Tippie College of Business. It will support creation of a state-of-the-art business education facility through a major renovation and expansion project of the John Pappajohn Business Building and Gilmore Hall.
“HNI is proud to support the renovation and expansion at the Tippie College of Business, an investment not only in the university’s future but in the future of Iowa’s business community,” said Mr. Lorenger. HNI Corporation has maintained a longstanding partnership with the university. Additionally, Mr. Lorenger serves on the Tippie Advisory Board.
Kelly Ortberg’s golden touch
Iowa native, University of Iowa graduate and former Rockwell Collins CEO Kelly Ortberg took the top job at beleaguered Boeing a year ago, and by most accounts is performing exceptionally well. Boeing’s stock is up nearly 30% since he became CEO on Aug. 8, 2024.
Boeing is the largest aerospace company in the world and one of the biggest defense contractors, with an estimated 170,000 employees.
Mr. Ortberg “walked into a very difficult situation and did what needed to be done quickly,” said John Plueger, CEO of aircraft lessor Air Lease, in a news article. “It has boosted my confidence, and our company’s confidence in Boeing and the path forward. I think he has his priorities right.”
Mr. Ortberg could position himself as one of the best CEOs of this century if Boeing’s turnaround continues and its stock price grows.
We wish him continued success.
