Steelcase Inc. announced today it has signed a definitive agreement
to acquire HALCON, a Minnesota-based designer and manufacturer of
precision-tailored wood furniture for the workplace. This
acquisition will complement the current portfolio of Steelcase wood
products, offering uncompromising design and master craftsmanship
to A+D professionals and customers.
Established in 1977, HALCON is a leader in custom wood and
executive-level tables, credenzas, and desks. With a culture of
quality and innovation, the company’s portfolio features patented
award-winning furniture collections for today’s private office,
open-plan, and collaborative spaces. HALCON’s range of
sophisticated solutions elevate the worker experience with
thoughtful and innovative details.
“At HALCON we combine manufacturing flexibility, craftmanship
and exceptional service to solve the unique needs of our clients,”
said Ben Conway, president of HALCON. “We’re thrilled to join
Steelcase and together expand the reach and impact of our products
while remaining committed to our existing customers, distribution
channels and workforce.”
Steelcase and its community of brands offer an extensive
selection of solutions and services designed to support the way
people and organizations want to work today.
“From private office to conference rooms, we were attracted to
the HALCON brand for their fine craftsmanship that enables
organizations to create signature, custom-designed workplace
environments. When matched with our shared commitment to quality,
sustainability and service, HALCON is a natural fit for our
community of brands,” said Allan Smith, senior vice president,
chief revenue officer of Steelcase. “We expect to drive strong
growth by making the HALCON portfolio even more accessible to our
customers, A+D professionals and dealers. We believe HALCON’s
success is rooted in its commitment to quality and long-term
partnership with A+D firms, clients, suppliers, the dealer
community and employees, and we expect that to continue.”
The transaction is expected to close during Steelcase’s second
quarter of fiscal 2023, subject to regulatory approval and the
satisfaction of customary closing conditions. It involves the
acquisition of all outstanding equity interests in HALCON for
$127.5 million and includes an adjustment for working capital and
potential additional consideration of up to $9.5 million payable to
the seller over three years based on the achievement of certain
performance targets and continued employment of Mr. Conway.
Steelcase intends to fund the acquisition using cash on hand and
availability under its credit facility, as needed. HALCON
posted revenue of approximately $70 million over the trailing
twelve months through April 2022, and its backlog of customer
orders was approximately $56 million as of the end of April 2022.
“We see many opportunities for growth between the two companies
going forward, including geographic expansion, portfolio
enhancement and continued revenue gains in HALCON’s existing core
markets,” continued Smith.
The expected acquisition builds upon previous acquisitions aimed
at growth by delivering a broad portfolio of products, including
the acquisitions of Viccarbe, Orangebox, AMQ and Smith System,
supplementing a leading portfolio and offering greater choice and
value to Steelcase customers globally. Steelcase has previously
announced marketing and distribution relationships with Blu Dot,
Bolia, Carl Hansen & Son, EMU, Extremis, FLOS, Mattiazzi,
Microsoft, Mitchell Gold + Bob Williams, Moooi, Nanimarquina,
PolyVision, Tom Dixon and West Elm.
Forward-looking Statements From time to time,
in written and oral statements, Steelcase discusses its
expectations regarding future events and its plans and objectives
for future operations. These forward-looking statements discuss
goals, intentions and expectations as to future trends, plans,
events, results of operations or financial condition, or state
other information relating to Steelcase, based on current beliefs
of management as well as assumptions made by, and information
currently available to, Steelcase. Forward-looking statements
generally are accompanied by words such as "anticipate," "believe,"
"could," "estimate," "expect," "forecast," "intend," "may,"
"possible," "potential," "predict," "project," "target" or other
similar words, phrases or expressions. Although Steelcase believes
these forward-looking statements are reasonable, they are based
upon a number of assumptions concerning future conditions, any or
all of which may ultimately prove to be inaccurate.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements and vary from
Steelcase's expectations because of factors such as, but not
limited to, competitive and general economic conditions
domestically and internationally; acts of terrorism, war,
governmental action, natural disasters, pandemics and other Force
Majeure events; cyberattacks; the COVID-19 pandemic and the actions
taken by various governments and third parties to combat the
pandemic; changes in the legal and regulatory environment; changes
in raw material, commodity and other input costs; currency
fluctuations; changes in customer demand; and the other risks and
contingencies detailed in Steelcase's most recent Annual Report on
Form 10-K and its other filings with the Securities and Exchange
Commission. Steelcase undertakes no obligation to update, amend or
clarify forward-looking statements, whether as a result of new
information, future events or otherwise.
About HALCON With exceptional innovation,
uncompromising design, and master craftsmanship, HALCON creates
furniture tailored to the modern workplace. The company’s
award-winning solutions are made in Stewartville, Minnesota with
the highest standards of quality and performance. Visit HALCON at
www.halconfurniture.com
About SteelcaseOrganizations around the world
trust Steelcase to help them create places that help people work
better, be inspired and accomplish more. The company designs,
manufactures, and partners with other leading organizations to
provide architecture, furniture, and technology solutions –
accessible through a network of channels, including over 800
Steelcase dealer locations. Steelcase is a global,
industry-leading, and publicly traded company with fiscal year 2022
revenue of $2.8 billion. For more information, visit
steelcase.com.
Investor Contact:Mike O’MearaInvestor
Relations(616) 292-9274 |
Media Contact:Katie PaceCommunications(312)
350-0502 |
Source: Steelcase IncSC-GR
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