HNI Corporation’s $2.2 Billion Acquisition of Steelcase

In August 2025, HNI Corporation announced a definitive agreement to acquire Steelcase Inc. in a cash and stock transaction valued at approximately 2.2 billion. Under the terms of the deal, Steelcase shareholders will receive 7.20 in cash and 0.2192 shares of HNI common stock for each share they own, representing an implied per share purchase price of 18.30. This valuation reflects a multiple of approximately 5.8x trailing twelve-month adjusted EBITDA, inclusive of projected run-rate cost synergies of 120 million.

The combined company will have pro forma annual revenue of approximately 5.8 billion and adjusted EBITDA of 745 million, creating one of the largest commercial furniture and office solutions providers globally. Following the transaction’s close, expected by the end of 2025, HNI shareholders will own approximately 64% of the combined entity, while Steelcase shareholders will hold the remaining 36%. Jeffrey Lorenger, HNI’s Chairman, President, and CEO, will continue to lead the combined company, which will maintain both the Muscatine, Iowa and Grand Rapids, Michigan headquarters.

Strategic Brand Acquisitions in Home Furnishings

Magnussen Home Acquires Pulaski and Samuel Lawrence

Magnussen Home Furnishings expanded its portfolio in December 2025 by acquiring Pulaski Furniture and Samuel Lawrence Furniture from Hooker Furnishings Corporation. The transaction, which closed on December 10, brings two established case goods brands into Magnussen’s portfolio. Pulaski Furniture, founded in 1955 with a 70-year history, specializes in bedroom, dining, accent, and display furniture. Samuel Lawrence Furniture, with over 50 years in the market, offers bedroom, dining, youth, and home office collections.

As part of the acquisition, Magnussen assumed Home Meridian’s High Point corporate office and its 220 Elm showroom, expanding the company’s presence at the High Point Market. Page Wilson, former president of Pulaski, was named senior vice president and head of operations for the newly acquired brands. The acquisition strengthens Magnussen’s leadership in case goods and provides retailers with more choice across design styles and price points.

Nick Scali’s Entry into UK Market

Australian furniture retailer Nick Scali expanded internationally by acquiring UK home furniture retailer Fabb Furniture for £2.00 plus £3.5 million for secured debt. The acquisition includes Fabb’s 21-store network across the UK, with plans to invest in store refurbishments and rebranding to establish the Nick Scali brand in the UK market. The deal represents Nick Scali’s first foray beyond Australia and New Zealand, providing an immediate entry point into the large UK market with a scaled platform across key locations.

Industry Events and Innovations

Woodex 2025 Exhibition

The International Woodworking and Furniture Industry Exhibition (Woodex 2025) was held from December 2-5, 2025, at the Crocus Expo in Moscow. The event featured 210 companies from 8 countries, showcasing innovations in woodworking equipment, materials, and furniture production technologies. Industry leaders such as KAMI and Nanxing presented cutting-edge equipment and materials, highlighting the latest trends in the wood and furniture markets.

Key Market Trends Shaping 2025

Sustainability and Eco-Friendly Materials

The furniture industry in 2025 continues to be shaped by a growing emphasis on sustainability. Consumers are increasingly seeking furniture made from recycled materials, certified wood, and low-VOC finishes. The concept of circular furniture—renting, repairing, and reupholstering—is gaining traction as consumers aim to reduce waste and extend product lifespans. Studies show that consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods.

Technology Integration

Smart furniture is becoming increasingly sophisticated, moving beyond basic charging ports to include features like built-in sensors, actuators, and connectivity capabilities. Smart beds can track sleep patterns and adjust mattress settings, while smart sofas incorporate massage functions, built-in speakers, and charging stations. Augmented reality (AR) and virtual reality (VR) technologies are transforming the furniture-buying experience, with 71% of customers indicating they would shop more often at stores offering AR experiences.

Multifunctional and Modular Designs

Space-saving solutions continue to dominate as urban living spaces remain compact. Modular furniture that can be rearranged to fit any space is particularly popular, along with multifunctional pieces that serve multiple purposes. Custom cabinets with built-in features, storage ottomans, and convertible furniture pieces are seeing increased demand, with industry data showing a +60% increase in demand for multifunctional furniture since 2024.

Natural Materials and Biophilic Design

Natural materials like solid wood with live edges, stone, rattan, and woven textiles are making a strong comeback. Earth tones such as deep browns, forest greens, and ocean blues dominate color palettes, reflecting a connection to nature. The integration of natural elements extends to built-in water features and indoor fountains, creating serene focal points that contribute to healthier living spaces. Major retailers report a +45% increase in sales of nature-inspired furniture compared to 2024.

Personalization and Customization

Consumers are increasingly seeking furniture that can be tailored to their specific design preferences and functional needs. This includes the ability to choose from a wide range of fabrics, colors, finishes, and configurations. Modular furniture allows for customized seating arrangements, while functional customization enables furniture to serve multiple purposes. The trend extends to material choices, with consumers opting for sustainable and eco-friendly options like bamboo.

Investment and Quality Focus

Homeowners are shifting from fast furniture to investment pieces that offer durability and long-term value. Quality is trumping quantity, with market data revealing that investment furniture pieces retain 80% of their value over five years. This trend reflects a broader movement toward responsible consumption and a desire for furniture that combines aesthetic appeal with lasting functionality.

The furniture industry in 2025 is characterized by strategic consolidation, technological innovation, and a strong emphasis on sustainability and personalization. As companies navigate evolving consumer preferences and economic challenges, those that successfully integrate these trends into their product offerings and business strategies are positioned for success in the competitive global market.