Steelcase buys wood furniture maker for $127 million
GRAND RAPIDS, Mich. — Office furniture giant Steelcase has acquired Halcon, a Minnesota-based designer and manufacturer of custom wood workplace furniture, for $127.5 million.
Steelcase says the acquisition will complement its existing portfolio of wood products.
“From the private office to conference rooms, we were drawn to the Halcon brand for its fine craftsmanship that enables organizations to create unique and personalized work environments,” said Allan Smith, senior vice president and chief Steelcase revenue. “We plan to generate strong growth by making the Halcon portfolio even more accessible to our customers, A+D professionals and resellers.”
“At Halcon, we combine manufacturing flexibility, craftsmanship and exceptional service to meet the unique needs of our customers,” said Ben Conway, President of Halcon. “We are excited to join Steelcase and together expand the reach and impact of our products while remaining committed to our existing customers, distribution channels and workforce.
The transaction is scheduled for the second quarter of Steelcase’s fiscal year 2023.
The agreement involves the acquisition of all outstanding equity interests in Halcon for $127.5 million and includes a working capital adjustment 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. It also requires Conway’s continued employment.
Steelcase said it intended to finance the acquisition using available cash under its credit facility, as needed.
Halcon had revenue of approximately $70 million in the last 12 months through April 2022, and its customer backlog was approximately $56 million at the end of April 2022.
Founded in 1977, Halcon manufactures custom and executive grade wood tables, credenzas and desks. The company’s portfolio includes patented and award-winning furniture collections for private offices, open spaces and collaborative spaces.
Steelcase is the second-largest contract furniture maker in North America, according to Woodworking Network, just behind MillerKnoll.