HNI acquires Steelcase for $2.2B in another blow to west Michigan

Grand Rapids will retain operations of office furniture giant Steelcase Inc. for now in a $2.2 billion cash and stock acquisition by Iowa-based HNI Corp. — another deal reshaping Michigan's corporate landscape.

The agreement to combine the two international office furniture manufacturers, announced Monday, is the latest transaction to rock the western side of the state. Founded 113 years ago with fireproof metal safes and filing cabinets, Steelcase and its 2,000 employees in Grand Rapids for decades have been a cornerstone of the west Michigan business community. But under the new deal, HNI will hold majority ownership, almost all of the board and retain the CEO role.

"The real headquarters is in Iowa, and over the course of a few years, more functions will be moved from Grand Rapids to Iowa," said Erik Gordon, a professor at the University of Michigan's Ross Business School. "It’ll be another headquarters loss from Michigan."

The Steelcase deal comes just weeks after Italian chocolatier Ferrero said it'll acquire cereal maker WK Kellogg Co. in a $3.1 billion deal, leaving a regional headquarters in Battle Creek. Clockmaker Howard Miller Co. and sister company Hekman Furniture earlier this month also said they will shutter manufacturing operations in Zeeland and Traverse City, winding down the businesses in 2026, 100 years after the manufacturer was founded.

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